Debt repayment help

Spoonhead88

Hello,

I have a few debts and need some advice on which way to pay them off.

I have 3 debts

£500 on a credit card not sure about the intrest on it. which os £13 a month payment

£2500 on a sofa agreement which 0% intrest which ends 01/2014 at £68 a month

£3039 fixed term loan at 17% which is £130 a month and finishs in 04/2013


I have £1000 at the moment and will have £700 each month to put toward debts. Im not sure if i should save up and pay off the bigger debt first. As its a fix term i have to pay it off in full or just keep to the payments or should i pay off the credit card now? I just want to be debt free but not sure which order i should do it in.

Any help would be great.

Thank you

[Deleted User]

Spoonhead88 wrote: »

Hello,

I have a few debts and need some advice on which way to pay them off.

I have 3 debts

£500 on a credit card not sure about the intrest on it. which os £13 a month payment

£2500 on a sofa agreement which 0% intrest which ends 01/2014

£3039 fixed term loan at 17% which is £130 a month and finishs in 04/2013


I have £1000 at the moment and will have £700 each month to put toward debts. Im not sure if i should save up and pay off the bigger debt first. As its a fix term i have to pay it off in full or just keep to the payments or should i pay off the credit card now? I just want to be debt free but not sure which order i should do it in.

Any help would be great.

Thank you

Pay first the debts that are costing you the most in interest from highest APR to lowest APR.

I would pay the CC in full, and put the remaining £500 + monthly £700 into the highest rate instant access savings account that you can find, and then when you have the full amount to pay the laon do so, then continue the saving until the end of the sofa 0% agreement period, and pay off in full before 0%.

HTH