Decisions. Cahoot flex loan vs 0% credit card

NeoVR2k6

Hi... not sure if this is the right section to post this.. but hoping someone can comment...

After a fierce couple of money saving months.. ive managed to achive lots, and save myself a shed-load of money by moving current accounts, and shifting credit cards onto one 0% BT offer on virgin..

Now ive got four main sources of debt:

My car (doesnt really count in this situation)

A Egg loan, 6.9% originally for 5k - about 3k now(again, not really relevent as rate is pretty good)

A Cahoot Flexible loan account for 7.5k, just put interest up to 9.1%

A Virgin Credit card.. full to 4k on it 0% until sept 07.

Now bearing in mind from january ill have maybe a extra £100 per month to put against one of these accounts what should i put it against?

My g/f seems to think it would make more sense going on the virgin CC as it would be "pure" debt reducing and i would effectively see a bigger debt-reduction return at the end of the year, she doesnt see my point of view whereby paying it into the cahoot loan, would slowly reduce the balance, and also the interest.. altho the change in interest paid per month would be minimal for a while.. but with paying money off the credit card, there would be nothing to stop me applying for another 0% in a years time with equal/greater limit that currently to transfer more of the cahoot account off!.
I konw its something that would need a pretty complex set of sums to work out the benifits either way.

I know there are several other options, but i think im pushing my luck with my credit rating as far as lines of credit go..

Does anyone have any tips/suggestions to help?

Thanks in advance :j

lynzpower

I am very biased but I would say the cahoot flexi loan. Have a look on the loans board, they put the APR up whenever they feel like it, and it seems legal too. My OH has had his APR more than double in the last few motnhs.

Avoid.

ZTD

NeoVR2k6 wrote:

My g/f seems to think it would make more sense going on the virgin CC as it would be "pure" debt reducing and i would effectively see a bigger debt-reduction return at the end of the year,

No you wouldn't. Calculate the interest.

NeoVR2k6 wrote:

I konw its something that would need a pretty complex set of sums to work out the benifits either way.

Use the snowball calculator. I'd bet it would tell you pay off Cahoot first.

DontDoDebtKids

If you are right, and you can get another 0% card when your Virgin one runs out, then logically you should pay off whatever has the highest interest rate.

The snowball calculator would probably say:

1) Cahoot (9.1%)
2) Egg (6.9%)
3) Virgin CC (0%)

Remember, if you plan to apply for a new 0% credit card to replace Virgin, that you should try to minimise the number of searches you carry out so that you don't damage your credit rating!