help-what to pay off first? overpayments!!

neenmarie

Hi

This is probably a really silly question but i'm gonna ask anyway. Is it best to overpay off your debts (loans and credit cards) first or your overpay on your mortgage? We have a few loans and credit cards which have a higher rate of interest on them than our mortgage so do we overpay them or do we overpay on the mortgage which is a longer term of borrowing (20 years). Any ideas on whats best? Thanks

ElmerFudd

If I were in your shoes I would definitely start by overpaying the highest APR card first while making the minimums on any of the others. Once all the credit cards and the loans are paid off I would focus on the mortgage. HTH

[Deleted User]

Always prioritise based on the cost to you in interest, as this will mean less money paid in interest and more money in your pocket

If CC's are charging you more than the mortgage in interest, over pay here first.

If you are able to transfer CC's to 0%, then overpay on mortgage first (but also make plans to have CC's paid off before 0% end - saving you interest payments)

D9