Do I still pay off credit cards first with such low mortgage rates?

russppt

Hi
I have a mortgage of £165,000 interest only fixed at 5.9% with 2 1/2 year remaining on fixed term. Payments are £840 per month. If I want to get out of this it will cost me about £5500 in penalty fees.
I have credit card debts of about 5k which I am servcing to the tune of £500-£750 per month in total and they are dropping steadily. Some of the cards are on 0% so I am paying off the ones that are costing the most at the moment..

Question: I am confused as to what to do. Should I keep tarting with the credit cards or pay them off, or pay the penalty fee on my fixed term to take advantage of the low rates or pay or channel more monies towards the captail repayments.
I went interest only on the mortage as I am self employed allowing to make capital repayments as and when I can to give me flexability.

Whilst I don't have the wolves knocking at my door (yet) so to speak I want to know if my priorities are right.
Can anyone help or provide a clear perspective as the the best direction?
Credit Cards?
Mortgage Capital Repayments as I am on higher rate?
Change Mortgage?
Cheers
Russell:think:

MissKJ

I would get rid of the cards. Sometimes when you change cards regularly,they stop offering you good deals. Then, as soon as I have got rid of debts except the mortgage, I would join the MFW group and start working on that. Psychologically, only having the morgage debt, and then seeing that reducing must be a wonderful feeling. If only.......

RAS

What rates do the Cards revert to after the 0% period?

The average is now about 17%, so you need to clear them.

Also appartently just paying the minimum is not triggering nerves with creditors. You need to pay an additional £5 to stop them spotting it.

PinkTwirl

If it was me, I would pay off the credit cards. A mortgage is a fair enough debt to have, not many of us have £150K in the bank, but credit cards don't keep to interest rates, etc. As said above, before you know it, they remove the 0% deal, whack it up to 35% and then you might find that you can't shift it to another one.

Good luck!

russppt

Thanks for putting some perspective on it. Sometimes you cant see the wood through the tree!
Russell
:beer: