Help which should go 1st?

gailey_2

Sorry if I come across as bit thick here but trying to prioritorise debts and whats should be paid off 1st and wondered is it just the
interest rate or size of balance?

My loan over 6years -4years left 40pounds a month at 9%
current balance remaining 950.

If I asked for full and final settlement would this figure be less than 950?

Hubbys loan he borrowed 27grand that includes interest as he wanted to borrow 18grand.
I think interest rate is 14%. monthly repayments of 386per month been running 2years another 4left ends jan 2015.
So far paid over 8grand any idea what full and final might be?
Hubby thinks maybe 17-18grand as you pay the interest first.

If you pay off loan early do you always save? I guess depends on early payment penalty.

In addition to loans I have

1600barclaycard at 29.9%
very 1000 at 44%:eek:

obviously its imperative these 2 go first!

Hubbys cards
credit card 1 4500 santander weirdly has no apr on its statements and hubbys not sure so needs to check.

tesco 2500-again unsure of interest I would hazard a guess at 19%but know only too well that they hike up interest rates as thats what happened with my barclaycard.

At moment have no idea if inheritance figure but hubby said we will see what it is and discuss whats best.
But hubby bless him who doesnt even know his apr or check his bankstatements may not look at it in most logical way.

Want to pay off as much debt as we can afford.
Also pay off ones costing us the most.

I know the loans depressing him so be nice to clear that early.
But then hate having credit cards

plus we both have overdrafts but feel credits cards more priority over od.

How does everyone else work out theres.

as debt free date seems so far away want to speed it up this year shave a few years off.

in ideal world would love to clear bulk in one lump sum and spend 2011 being super frugal so maybe by xmas 2011 we truly will be debt free!Anything paid off will be extra money to chuck at remaining debts.

Tixy

HI

You'll need to enter all your debts, aprs etc into the snowball calculator http://www.whatsthecost.co.uk/snowball.aspx
You'll need to look through your paperwork to find out the APRs and to find out which if any of the loans allow overpayments, and what the minimum repayment is on your cards. Put all your debts in, inlcuding the overdrafts.

This calculator will then tell you the most cost effective method of repaying the debts and your estimated debt free date (DFD). Obviously if you can afford to increase your total monthly amount then that will bring your DFD down.

If any credit card threatens to hike up the interest rate then you need to opt out within 30days (it means you can no longer use the card but can continue to repay at the same APR).

gailey_2

Thankyou tixy thats most helpful.

wont be able to decide anything until new year when we work out whats what.

At moment we ensuring all bills paid, we within our limit but most are min payments.

Hubbys hopeful for tax rebate 2grand but need to change our car of doom so part car part debts.

Also feb march free months on council tax and water so should have extra 250 on those months to throw at some debts.

due 3rd baby in april so be nice to get the debts under control and lowered and a concrete budgeted plan how to be debt free in fastest possible time.

need to speak to loan providers
get uptodate balances
aprs for hubbys cards.