Could do with some advice..

lil_louus

Hi all
I could do with some advice with my finances..

I took out a loan earlier this year for my wedding for next year which is sitting in my account (£3000)

I currently have £1500 outstanding on a credit card and an overdraft of £900.

My income per month is £1000 -

My outgoings per month are:
£500 towards bills inc mortgage (joint mortgage)
£150 loan payment
£75 Card payment
£150 childcare fees

Should I pay my card and overdraft off with the money for my wedding?!

Thanks
lil_louus

jellybean08

Hi lil_louus,
I think it all depends on interest rates but i'm uselss at those, i'm sure someone will come along who knows what the best order is to do things in. Is it a 0% credit card and overdraft? and what's the rate on the loan and term of repayment?

How were you then planning on paying for your wedding?

Congratulations btw! :T

lil_louus

No the card is about 14% apr and I dont know what APR the overdraft is - its with Barclays Additions plus.
I guess my best bet is to transfer the card..
Loan is 6.8% over 5 yrs was for £7500 originally..

RAS

Any early redemption penalty on the loan?

lil_louus

Yes its 2 mths interest.

Jesthar

Personally I'd say you were better paying off the credit cards than just having the money sit there - you'll save yourself a good deal of interest if you do, far more than you can earn in savings, even on a low interest balance transfer. Unless you can transfer the card to a 0% life of balance deal, of course.

It will depend on how you are then planning to finance your wedding, though - did you have any ideas about that?

~Jes