Pay off credit cards or mortgage 1st?

Hi I currently have £6200 on 2 interest free credit cards. The 1st with MBNA has £3300 currently owing on interest free until March 2011 and £3000 owing to Egg on Interest free until August 2011. I project that my balance with MBNA will be £2300 next March and £1700 with Egg in August 2011. I don't know if to reduce my mortgage payments by £200 per month between now and then or leave my mortgage as it is and find another interest free credit card balance deal when my current deals expire. I would be grateful if someone could advise me on this as i'm stuck between wanting to pay my mortgage and clear my debt. I'm also hoping any extra money inbetween will reduce these balances and I have a good credit rating. Your help is much appreciated

:money:

Comments

  • CannyJock
    CannyJock Posts: 3,838
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    There's no guarantee of a new 0% deal in March and August 2011, but if you're total borrowing is around 25% of your income then no reason to assume you won't get another card in February 2011 to transfer the MBNA balance to and consider closing that card, then apply for another card in July 2011 to take the Egg balance.

    That's what I'd do, and put my overpayments to work reducing the highest APR debt which for the next 9 months will be your mortgage.
    "A child of five could understand this. Fetch me a child of five." - Groucho Marx
  • winders
    winders Posts: 7 Forumite
    Thanks for the advice
  • CLAPTON
    CLAPTON Posts: 41,865
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    it depends upon what you mortgage interest rate is

    I would consider saving the 200 per month until March 2011; if you can get a new 0% deal then great if not you can then clear (most) of the MBNA debt.
  • KonkyWonky
    KonkyWonky Posts: 648
    First Post First Anniversary Combo Breaker
    Forumite
    Always pay the debt with the highest rate first.......
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