which to pay off first...?

stevec_3

Hello all,

Just found this great site.. my first of many silly questions follows..

I have a loan with 14k worth of repayments left. and a final settlement of 13,400 ish.(£501 PCM) (cannot make partial overpayment)

I have 4,500 on a 0% credit card for 4 more months

I also have £2200 on an MBNA Platinum card.

I have 10,700 saved ready to pay off my loan.

This represents a rather half ****ed financial solution as we bought a house together rather ahead of schedule. (right house right price etc..)

now I wish to make a more permanant financial fix to the household.

I am considering the following.

Use 10,700 + 2000 from a super balance transfer (mbna) next time an offer floats through the letterbox.

Transfer the sainsburys balance back to MBNA .using above scheme.

then use the £500 per month free'd up[ from the loan to clear the low interest super balance transfer.

I have ample credit on my MBNA account so could afford to do this from a credit ratings point of view but I would like to know if it makes sense to you more experienced money savers...

thanks for your help.
Steve

Johnhowell

Steve,

Try https://www.whatsthecost.com, they have a section where you can enter each loan and it tells you which to pay off first, etc.

John

stevec_3

thanks for that.. It looks like the way to go is to use 2k to clear the card then do a super balance transfer to finish the loan off.

If I just use the card then I'll get stung with silly interest rates the whole time I am making payments as it pays off the lower interest first..

again thanks for your reply.

/Steve