Mortgage overpayment or Debts?

Cranny44

Hi

My current fixed rate is due to end in November and it will drop down form the 5+% we have been paying, we will then be approx £150 per month in pocket but have substantial debts we are paying off. Most were on balance transfers but these have now ended and we cant move them anymore, although we havent missed any payments we are probably at our credit limit. Apart from Egg which jumped considerably in the last month from 16.9% to 22% although i have no idea why as this is one i have been paying twice the minimum on for the last few months. But we have no problem making the current payments but have very little spare cash to reduce them further, mostly due to no overtime and no payrise for either of us in the last 2 years.

I am in agreement with many that rates wont rise really fast for a while yet as this would probably sink the already fragile housing market and so am thinking of what to do over say the next 12 months (while keeping an eye on rates if things start to rise i will then look for a fixed deal).

So would it be more beneficial for us to pay down the debts, overpay the mortgage of do 50 50 on both?

Any help would be appreciated.

Cranny44

getmore4less

Get onto the debtfreewanabe board also read up on snowballing debts.

do a SOA

It is unlikley the mortgage rates will ever get as high as your CC debt so not a sensible thing to do.

Thrugelmir

Cranny44 wrote: »

So would it be more beneficial for us to pay down the debts, overpay the mortgage of do 50 50 on both?

Pay the most off the debt (credit card) with the highest interest rate first.

Sit down and analyse your finances. Where you spend every penny, and find ways of saving money. As you are running a considerable risk of defaulting at some point in the future. It only takes a minor event to tip one over the edge.

Good luck.

opinions4u

would it be more beneficial for us to pay down the debts, overpay the mortgage of do 50 50 on both?

A mortgage is a debt. Don't confuse it with anything else.

Make sure you pay the minimum payment on everything and then whatever's left over should be paid off the one that charges the most interest. Looks like Egg to me.

All the other posts make sense.