Could I have some advice please :)

me123

Hello all,
Ive been joined to this site for ages but not posted.
I was just wondering if any of you could help me.

Im due to get a bonus from work in April/May time and I think its around £1300. Im on maternity leave and am looking to stay at home once my maternity leave has finished. I think my money stops in june/july time and I earn around £930 a month at the moment due to have a great maternity pay with the company I work for. However, I owe around about 7k and with my bonus would like to pay off a debt to make our outgoings less.
Question is, should I pay off most of my credit card bill (I owe £1600) or a loan (I owe 1300)? Currently paying around £108 a month (have around a year and half left on it) for the loan and minimim payment on Card - £45.

Many thanks for any help!

Me

Locke

What interest are you being charged on each?

me123

The credit card is 29.9% and I think 12.9% on the loan!

GaZ

Hi Me ,

personally I would say pay off the credit card as it has a higher interest rate , also some loans don't let you pay off early or have some fee attatched to do so (check the small print )- just my opinion i'm sure it will be corrected if wrong

Locke

Pay the credit card.

It may be cheaper repayments every month but you won't be making an sort of hole in it.

miss_missy

hi
you could always ask your loan for a settlement figure to see how much you would have to pay my loan was front loaded with interested and when i settled early i found the figure was slightly less than what i owed i had about 7 months to pay it off and saved £57 paying it early

if you were to pay off the loan you could then pay off £153 off the credit card each month and using the snowball calculator you could be debt free in 13 months this also allows you to over pay even more reducing the time until debt free

if you post an soa someone may beable to help you find even more money to throw at the debt for example finding an extra £10 a month could have you debt free a month earlier
remember also that you maybe saving money already by not being at work no paying for lunches/drinks during the day, drinks after work with friends

try the snowball calculator play around with figures and see
however my idea of paying off the loan should only really go a head if you put all your extra money at paying off your card

hth
good luck

miss_missy

hi
just a quick note i dont think your loan is front loaded as it would finish in about 13 months if it was and you say it has about 1 year and half left
check this out find out exactly when you finish paying it
if a year and a half i would consider paying it of still depending on settlement figure i did this with my chaoot loan they charged me £20 on what i owed but it gave me extra 130 a month to clear other debts althought they were higher apr my loan was only 5.8% i could clear my debts quicker and be debt free quicker by paying it off