What to do.... need help!

Hellokittie66

Hi, I have recently come into some money (£7500) and am wondering what to do.

Here is my situation -

I have about £8000 left on a loan (this was my settlement figure) - £364 a month till march 2011 (=£10k)
I have £6000 in credit cards (0% until feb 09) - i currently pay around £150 a month off them

What do i use the £7500 for? Pay off the loan, and be £364 better off a month, and use the £364 to pay off the credit cards so they clear quicker
or
Do i pay off the credit cards, and have £1500 left over and keep paying the loan at £364 until 2011?

Any advice?

thanks!

RichOneday_2

It depends whether or not you can move the CC balance to another 0% deal in Feb. If so, pay off the loan.

If not, it depends on the relative rates on the card and the loan. If you are going to end up paying standard interest on the CC in Feb I dare say you would be better paying this off.

amyandjon

id pay the loan off early and id use the extra 364 for credit card to get it paid before feb 09 ?? but if you did that it would be 514 a month meaning by feb 09 only 3000 paid off or just a little more what would the apr become ?? so maybe pay the credit card, 1000 in loan saving and 500 just to enjoy it and keep paying the 364 and save the extra 150 per month and 2010 maybe review the saving and if its near what you owe pay it off ?:S lol does that make sense x

Staciep88

im not an expert but I would say the loan purely because:
a, its a larger amount
b, because your not getting charged interest on the card

take advantage of not being charged interst on these cards, pay the loan off so that there is only £500 left of it and then work out how much money you need to pay off your credit card to make sure the balance is as little or even clear by feb09 to stop any interest.

Staciep88

oh and also in feb09 if the balance is not cleared you can always switch to another 0% card