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  • FIRST POST
    • Padme5
    • By Padme5 16th Mar 17, 6:31 PM
    • 2Posts
    • 0Thanks
    Padme5
    Advice please on which debt to pay down
    • #1
    • 16th Mar 17, 6:31 PM
    Advice please on which debt to pay down 16th Mar 17 at 6:31 PM
    Hi I'm looking for some advice please.
    My debts are
    Credit card £600 at 0% til October, am paying £100/m
    Loan 22 months left at £183/m APR 7.9%
    Credit card £6300 (eeek) j0% for another 36 months paying £65/m

    I have a bonus of £1000 from work and i was going to clear the first credit card at £600, pay my BF back £200 I owe him and then pay £200 overpayment on my loan, which won't reduce the monthly payment but will knock a month of the length.
    Do you think this is best plan or put more to the interest bearing loan?

    This is the first time in ages, or ever, that I have managed to organise my debts and consistently make an overpayment and I really want to pay this off!

    Thanks
Page 1
    • juststuff123
    • By juststuff123 16th Mar 17, 6:52 PM
    • 199 Posts
    • 555 Thanks
    juststuff123
    • #2
    • 16th Mar 17, 6:52 PM
    • #2
    • 16th Mar 17, 6:52 PM
    Hi Padme,

    I can see the psychological benefit of paying off the credit card, it would certainly be a morale boost! But if you want the cold logical sensible thing to do then it's best to pay more off the loan. (rule of thumb - put you money where the interest is highest). I'm sure some one will be along with the actual figures but you need to decide how much the 'good feeling' from completely paying off one of your debts is worth to you. It's a good idea to pay B/F back though. Owing someone you know can be a lot more stressful than a owing a faceless corporation!

    Good luck with whatever you decide.
    NEW GOAL – Mortgage Balance £0k & £30k Savings by Feb 2019
    MORTGAGE: – £25869 / £0
    SAVINGS: – £43388 / £30000
    CREDIT CARD: – £2393 / £0
    COMPLETE - MFW & DFW - Goal - Debt Neutral – COMPLETE
    2018 MFW #152: £0/£14,326 / MFiT-T4 #80: £18866/£45,232
    • Padme5
    • By Padme5 16th Mar 17, 9:19 PM
    • 2 Posts
    • 0 Thanks
    Padme5
    • #3
    • 16th Mar 17, 9:19 PM
    • #3
    • 16th Mar 17, 9:19 PM
    Thanks juststuff, I think as you say paying down the loan is the sensible thing to do. I want to have one less debt and but I am a bit worried that if I clear the card I will fritter the additional £100/m instead of adding it to the loan or other card repayment.
    I suppose it's tempting to think if I clear the card I will be £100 better off per month but I need to think more that the £100 goes to other debt!!
    • enthusiasticsaver
    • By enthusiasticsaver 17th Mar 17, 8:34 AM
    • 4,833 Posts
    • 9,129 Thanks
    enthusiasticsaver
    • #4
    • 17th Mar 17, 8:34 AM
    • #4
    • 17th Mar 17, 8:34 AM
    I would pay it off the loan. Leave the £100 per month to go to the card with 0% expiring October until paid off then increase loan payment by £100. Once loan paid off throw everything at final credit card.
    2 weeks to go until early retirement in December . Debt free and mortgage free.

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