Decisions Decisions

maxcars1

Ok which direction should I take? I have a 112 K mortgage at 4.79 fixed for 2 yrs with 21 years remaining. I have a loan of £3900 at 6.9. I have a credit card of £5200 which I will split between a 0% for 12 mths and a lifetime deal of 4.75%. I do not have an overdraft.

Should I increase my mortgage payments or reduce the debt?

roswell

reduce the debt first your mortgage is long term your debts will have short terms before introduction offeres run out.

once your debts are wiped out you can put the payments that went to them towards your mortgage

maxcars1

Would you reduce the loan or the CC - the CC has a lifetime of 4.75 compared to the Egg Loan of 6.9%?

If I could wipe out he debt I would have approx £300 of spare cash to kill teh mortgage.

roswell

you could look at gettign a another life of balance credit card and use a super balance transfer card to pay off the loan but you most likely incure costs for early repaylent on the lon which may wipe out the savings.

cazmanian_minx

Check the T&Cs, but when I had an Egg loan a couple of years ago, they didn't have any early repayment charges - if that's still the case, tackle the loan first.

Caroline