Newbie looking for some advice

the_hounds

Hi i'm new to the forum and i'm hoping for some advice, i have over the last 18 months managed to clear a lot of my outstanding debt although i have had a couple of late payments on my credit file during that time (all up to date now)

My question is this i am due to get bonus tomorrow (£2100) i have £2200 outstanding on a Nat-West platinum credit card (the limit is £2300) and £2300 outstanding on a Black Horse loan. I have calculated the interest on both and they both work out roughly the same, i'm also making roughly the same monthly payments on both of these accounts. I am conscious that my previous payment history has knocked my credit rating (i've checked with Equifax & Experian) I'm going to settle one of these accounts in full tomorrow but i was wondering which would have the most positive impact on my credit rating settling the loan in full or settling the credit card in full. I would over the next year or like to re-locate and i will need to apply for a new mortgage.

It feels good knowing that i'm almost there with debt, 18 months ago i had three loans and four maxed out credit cards now i have my mortgage and the two accounts above (besides the usual utility stuff)

I WOULD NEVER WANT TO GO THROUGH ALL THIS AGAIN, ITS NEARLY BOGGED ME DOWN BUT IVE KEPT GOING AND IM NOW IM ALMOST AT THE END OF A VERY LONG TUNNEL!

Thanks in advance

jon_boy75

if it was me, i'd pay off the loan first, purely because you have more flexibility with the credit card if you wish to overpay. it sounds like you're trying to reduce your debts, which is a good thing

also, if things improve on your file, which it seems they will, you could switch the card balance to a 0% in a few months and pay that down quicker too

the_hounds

***UPDATE***

I settled my Blackhorse loan today which feels great, i also negotiated a £152 early settlement discount which was nice. I then phoned Natwest and knocked the saved £150 of my credit card, nice feeling i'm almost there!