some debts to clear

calitriuk

hi i am just wondering if anybody can help me out I currently have a £4000 bank loan over 3 years an overdraft of £900 and a credit card which has no debt on it just £750 credit limit i need to clear all these before I even start looking at my mortage, i am trying to improve my credit rating aswell,I was going to close down the credit card account but im wondering if it any use to me?

credit card is a vanquis visa, purchase interest 4.516% cash interest is 4.996% £750 credit

Loan £4000 over 36 months 17.1 % not sure how much there charging me on my overdraft

should i use the credit card to pay some of the loan of or pay the overdraft or cancel it not quite sure what to do for the best
thanks for all replys :mad:

Tixy

Hi

Are your vanquis rates the monthly interest rates? (I suspect they are as its a subprime card). If so this would be much much more expensive then your loan or your overdraft.

I would imagine the only way your card could be useful is if you decided to use it for your day to day purchases and then repay in full each month (so that no interest is charged). This will mean that your overdraft spends less of the month overdrawn and therefore save in interest. However only take this route if you are certain to be able to pay it in full every month, otherwise the interest will be expensive.

calitriuk

yes i probably would over spend i guess its best to get rid of the card that may be the safer option
thanks for the info