Advice Needed Please

LynnB_2

Hello - I wonder if someone could please help me with this question:

I have an Egg loan over 7 years which ends in November 2010 at the rate of 7.7% p.a. of which I now have £14,363.11 left to pay (repayments are £292.98 per month).

I also have the following credit card debts:

Barclaycard - £14,498.02 at 5.9% and 6.9% for life of balance
Texaco - £1,323.58 at 3.9% for life of balance
Virgin - £8,195.62 at 2.9% until April 2006 (then goes to 15.9%)
Egg - £200.00 at 15.9%


I should hopefully have a lump sum of £16,000 available in February (proceeds of a house sale) and would like to know the best way of using this lump sum? I think I have two options:

1) Pay off Barclaycard, Texaco card and Egg card (and then close all accounts). Then "top up my existing Egg loan" with the Virgin card.

OR

2) Pay off existing Egg loan and Texaco card and then apply for new Egg loan to cover most of Barclaycard, Virgin and Egg card.

I'm just not sure which will be the best way to go about this with regards to the interest etc., and would be very grateful if anyone could please give me some advice.

Many thanks.

black-saturn

If it were me (and it entirely up to you if you take my advice) I would pay off the Egg loan and the Egg credit card. Then I would try to transfer the remaining debt from the other cards to a 0% card. If you cant do this they should get paid off a lot quicker anyway as you will be able to use the £300 odd per month you were paying on the loan on paying off those debts.

Dont get a consolidation loan. They only put you in debt for more amount over a longer period of time for more interest.

skintchick

I agree.

Have a look at https://www.whatsthecost.com/snoball.aspx to see how that extra cash each month will make a big difference to your debts, to inspire you.

skintchick

sorry, that should be snowball, but it won't let me edit it.