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Loan Or CC payoff
pbfhpunk
Posts: 223 Forumite
I think I know the answer to this, Irecently paid all but one of my CCs off in full I was going to pay the other one but had to buy something so kept it on.
I also set up an SO to pay an extra £100 on my loan each month.
Now have just thought it might be better to pay the CC with the extra £100pm first as obviously the interest rate is higher, then when that's gone or at a reasonable amount pay the money to the loan or pay £100 off both each month.
Any thoughts?
I also set up an SO to pay an extra £100 on my loan each month.
Now have just thought it might be better to pay the CC with the extra £100pm first as obviously the interest rate is higher, then when that's gone or at a reasonable amount pay the money to the loan or pay £100 off both each month.
Any thoughts?
Hell yeah!!
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Comments
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Under snowballing rules the extra should go to the highest interest first as this minimises the interest accruing and means overall you'll pay everything off quicker.26.2.19/14.1.19: T MC 3629.26/3629.26 : VM 0% 1050/13876.59 : W 0% 100/1485 = 4409.26/18990.85 =25.17%28.1.19/28.1.19 Hubs 0% £400/£2,977 =13.44%SPC 2019 #073
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