Help with loan from GE capital

blt

Could anyone offer any advice? I took out a loan with GE Capital just under 18 months ago and have (just) about managed to make the £205 each month - just once it was late. I received my annual statement from them the other day and because of e high interest rate, I still owe over £12,000 when I borrowed £13,000 in the first place. My head was all over the show when I took this out but it is a secured loan on my property (10 years). Can anyone who is a whizz with a calculator help me? Should I try and pay back say, an extra £50 per month? Should I class this as a priority debt? My others are Next £600 balance, Capital One Visa £1200 and Warehouse £150. I also have a car loan with Egg which has 18 months left to run which is £191 per month.

I am managing to make the repayments on these but wondered if people would advise getting rid of the 'smaller' ones first and then tackling this big loan? I know everyone always says about the one with the highest interst but I was thinking that the money I paid towards the smaller ones would be a bigger 'hit' if I then increased my monthly repayment on this awful secured loan.

Help!

hoggums

You should tackle the ones that charge the highest interest first - regardless of size. This will be the quickest way to reduce your debt.

However if you are struggling to make the payments then it would be wise to work on the smaller ones first to reduce that monthly outgoing as fast as possible. Then use spare money every month to overpay on your existing debts - prioritising the high interest ones first.

RAS

Hi

Do a fulll Soa on here and play with the snowball on www.whatsthecost.com.

Do check for early repayment penalty clauses in your loans first though.