Saving Interest on Debt

oliel

Hi There

I have the following debt
£12000 loan 7.9% apr
£6500 mortgage reserve ac - monthly interest of 0.42%
£1100 credit card 18.9% apr

I can afford to pay £450 a month out against these debts - I just wondered if I should change the way I pay my debt.

I currently pay £253 on loan but its flexible so I could pay off more.
And the remainder of the £450 off the others. Is it better to get a 0% cc and transfer reserve onto that?

Thanks

beanielou

Froim what I can see you would pay the most from the credit card debt which is at 18.9% APR.
HTH.

bottleofred

Hi Oliel,

Always pay the debt that costs the most first. In this case, this is your credit card, so I would definitely concentrate on that.

GeorgeUK

You could try getting a 0% card to transfer some of the higher APR debt to. I would keep any cleared cards open incase you can get another BT offer later - possibly when the 0% runs out on the new card.

I would then tackle the higher APR debts first, but make sure you are not stuck for somewhere to transfer the debt to when any promotional offer ends.

Poostix

I have a spreadsheet I use if you want a calculator, it works out pretty good PM me with your e-mail address and I'll get it over to you. its reduced my interest payments by around 96 quid over the past year by re-arranging my debts for me.