Extra cash - pay off defaulted egg loan or not ?

barshamhillbilly

OK - so I have a debt with Egg - A defaulted personal loan with £6500 remaining to be paid. Egg have been agreed to accept £30 month and have actually been paying £80 month for the last few months as I have had more than I expected coming in but am back down again to £30 / month. Interest is not being added to the outstanding balance.

I have just sold something and find myself with £900 burning a hole in my pocket. The question is do I pay it off the egg loan, which will obviously reduce the debt, do I pay it off my mortgage - will will reduce interest being paid to it, do I put it away in case Egg change their mind and start charging interest.

Secondly, I understood that if I got the balance below £5000, if it ultimately went to court they couldn't apply interest anyway - is this the case or did I read it wrong or dream it up?

What do you think?

BHB

BeautyandtheBeast_3

if it was me i would use it or 90% to put against the egg card - bringing it down and out of debt a lot sooner! but thats me xxx

barshamhillbilly

BeautyandtheBeast wrote: »

if it was me i would use it or 90% to put against the egg card - bringing it down and out of debt a lot sooner! but thats me xxx

That was my gut feeling too

BeautyandtheBeast_3

just think the sooner its gone the sooner YOUR money goes on YOU!

barshamhillbilly

Decided on a chinese tonight and the rest on the loan