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which debt? Mortgage or Credit cards??
Empty_pockets
Posts: 1,068 Forumite
Hi,
Been on the phone to HSBC this morning. They have implemented the BOE rate drop of October 7th to their variable rate mortgages. I asked about the recent 1.5% drop, they said it was under review and will respond in a month.
Anyway.
I've been overpaying slightly on my mortgage(s) for some time. I'd set it up when I realised how much a mortgage costs over it lifetime!!! Hated paying that much interest!
Anyhows - i've one main mortgage and 3 equity loans/mortgages all with HSBC. I've been paying £550pm. Nice round figure. If I just made the minimum payment I'd pay around £480pm. £70 difference.
I've about £12K on a Virgin Credit card (0.9% till March iirc)
Do I leave the mortgage as is or change it and try and get the CC paid off?
Come March I may be in trouble as I tried recently to get a life of balance card and failed, bad credit.
I think I just answered my own question!!
Been on the phone to HSBC this morning. They have implemented the BOE rate drop of October 7th to their variable rate mortgages. I asked about the recent 1.5% drop, they said it was under review and will respond in a month.
Anyway.
I've been overpaying slightly on my mortgage(s) for some time. I'd set it up when I realised how much a mortgage costs over it lifetime!!! Hated paying that much interest!
Anyhows - i've one main mortgage and 3 equity loans/mortgages all with HSBC. I've been paying £550pm. Nice round figure. If I just made the minimum payment I'd pay around £480pm. £70 difference.
I've about £12K on a Virgin Credit card (0.9% till March iirc)
Do I leave the mortgage as is or change it and try and get the CC paid off?
Come March I may be in trouble as I tried recently to get a life of balance card and failed, bad credit.
I think I just answered my own question!!
0
Comments
-
I guess it depends to an extent on what happens to that £12K Virgin debt in March. If you can roll it over to another zero or very low rate card fine, but I wouldn't bank on being able to do that for ever, so my inclination would be to pay off that £12K CC debt. Perhaps put what you can into an interest-earning savings account till March: if you can roll over to another zero rate card, keep putting money into the savings account. If and when you can't roll it over at a very low rate, use the money in the savings account to pay off some of the £12K.
As always the general rule is pay off the debt which has the highest interest rate.
And don't run up any more CC debt!0 -
Mate id pay as much on the virgin card as i could..
You are not going to be able to keep moveing the bal to 0% cards forever if you have a bad credit reating i know because iv go one.
All the best and good luck:jYou can have everything you wont in lfe, If you only help enough other people to get what they wont.:j0 -
Hi,
Thaks for that. I know i'll not be eligble for another card. Might just take a bit of switching around again to get a reasonable rate.
Reduced the mortgage now anyway, should help a little. Roll on a permanant contract at work...0
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