I have £10k to Pay off £25k - What To Do!

CD_Man

Hi - I have just arranged a mortgage for myself and am buying my 1st place fingers crossed that the survey is fine!

Thing is - I have a £20k loan outstanding & £5k in credit cards so £25k in total - i didnt want to tie all this in to the mortgage as Im sure I would have been paying more in interest etc over the mortgage period.

I have £10k to put towards paying off my outstanding debt - what would be the best way of doing this as cheaply per month as possibe becuase as it is after paying my mortage & bills etc I'll have around £3-400 a month left.

Any replies are appreciated

Thanks

Kevicho

The best thing to do is post a list of these debts and the interest rates next to them, although the best thing to do generally would be pay off as much of the high interest rate debt first (and then in order of highest interest rate)

rchddap1

Also remember once they're paid off.....don't start to use those credit cards again.

apples101

please supply more details card/loan type %APR ballance & Minimum payment and if you have Payment Protection Insurence.

and then i am sure we can help you out more.

CD_Man

Thanks for the quick answers!

I have the details at home so will post them up this evening

CD_Man

Right as promised, the apr rates!

I owe £2996 on MBNA @ 24.9% - minum payment £60 :eek:

I owe £2900 on Egg @ 19% - £54 :eek:

I have a £20k loan with Natwest @ 7% - currently £337 a month

So its actually over £25k but I've got £10k tp put towards paying some of it off - I take it I should be clearing the cards 1st and putting then re-financing the loan? Is there anything else I can do? I need to make the monthly payment as cheap as possible as Im gonna be skint from the mortgage and associated bills!

Any advice would be great - Thanks :cool:

Alleycat

Definately pay the MBNA and Egg cards off asap with some of the 10k. Those interest rates are definately :eek:

Re the loan, first check whether you can overpay on it and if so are there any penalties (i.e. several months interest tacked on) to paying it off early.

CLAPTON

obviously pay off the credit cards.
be very very careful after you buy you 1st place as there will be loads of things to buy (which of course you wont),
before doing anything else you might wish to post a Statement of Affairs (SoA) here which will mean people here will be better able to assist you


If you browse the bulletin board you will see examples but the general format is

: statement of income:

: statement of expenditure
this should be quite detailed but excluding debt repayment
: a subtotal to save us all having to add it up

: statement of all debts including
outstanding amount, monthly repayment , APR
a subtotal of the total debt and of the total repayments, to save us having to add it up

also add a brief details of you situation, partner, any children, rent or own property, value of house and mortgage, any special circumstances that are relevant

I would suggest you post a Statement of Affairs (SoA) here and people will give advice.

In your circumstance you may wish to post the figures for the situation after you buy the property (i.e. mortgage, council tax etc etc.