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A little bit of advice please!
AEKI
Posts: 12 Forumite
Hi all,
Current debt situation:
Credit Cards:
£5,616 with Barclaycard - Annual APR 14.90%
£2,486 with CitiCard - Annual APR for the life of the balance 3.90%
Loan:
£25,416 with Birmingham Midshires - £159 a month (6.45% fixed until September 2012)
Mortgage:
£79,456 with Birmingham Midshires - £491 a month (6.45% fixed until September 2012)
For the last year i've buried my head in the sand and only paid the minimum which only covers the interest with Barclaycard. I'm now trying to pay off as much as possible.
For the last two months I have paid £250 of Barclaycard. I cannot shift the balance as i've been rejected twice, don't want to risk a third time so Barclaycard is my biggest priority.
I've been working a bit of overtime so am hoping to be able to pay another £200 off the Barclaycard this month and my bonus is due next month so will be paying another £500 off it then.
Once the Barclaycard is clear I think my priority should be the BM loan as it's attached to my mortgage over a period of 35 years (32 years remaining). If I overpay this loan by £250 a month I could save myself 24 years and approx £30,000 interest.
I say this because paying the minimum on the Citi card will take 14 years to pay but will only cost me £390 interest over that period according to the snowball calculator.
Is my way of thinking correct?
Current debt situation:
Credit Cards:
£5,616 with Barclaycard - Annual APR 14.90%
£2,486 with CitiCard - Annual APR for the life of the balance 3.90%
Loan:
£25,416 with Birmingham Midshires - £159 a month (6.45% fixed until September 2012)
Mortgage:
£79,456 with Birmingham Midshires - £491 a month (6.45% fixed until September 2012)
For the last year i've buried my head in the sand and only paid the minimum which only covers the interest with Barclaycard. I'm now trying to pay off as much as possible.
For the last two months I have paid £250 of Barclaycard. I cannot shift the balance as i've been rejected twice, don't want to risk a third time so Barclaycard is my biggest priority.
I've been working a bit of overtime so am hoping to be able to pay another £200 off the Barclaycard this month and my bonus is due next month so will be paying another £500 off it then.
Once the Barclaycard is clear I think my priority should be the BM loan as it's attached to my mortgage over a period of 35 years (32 years remaining). If I overpay this loan by £250 a month I could save myself 24 years and approx £30,000 interest.
I say this because paying the minimum on the Citi card will take 14 years to pay but will only cost me £390 interest over that period according to the snowball calculator.
Is my way of thinking correct?
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