Which debt to pay

shammyman

Hi

Quick question regarding which debt to pay extra off with any spare cash.

Our debt is as follows:

1. 5k unsecured loan
2. 7k on credit card interest free for 6 months
3. 46k mortgage - property currently on market looking to upscale - need more space as growing family and deposit and fees on new home currently equity in the current property.

Before you say don't move, pay off your debt first thats not really an option.

monthly loan, mortgage and minimum cc balance already paid and there is cash left over at the end of the month. So which one of the above is going to make that spare cash work the hardest?

Cheers

isy1011

No spare cash is the cash you have when all your debts are paid off and its just 'spare'.

Which has the higher interest rate - that's the one you pay earlier.

Do you need to move? We were thinking about it then said - no we cant afford it. Can you extend that's sometimes cheaper than paying estate agents big amounts of cash for nothing.

shammyman

if we could ge away with not moving then we wouldn't but live in a 2 bed flat and there's just not enought room. current mortgage only has 10 years on it so moving is not going to change monthly outgoings on mortgage massively as would mortgage over much longer period until debt clear.

The cash is only spare as i haven't made the decision which debt to pay it off yet!

isy1011

Im sorry if the answer was not what you wanted to hear. However, If you post on a debt free forum you kinda have to expect that people will say dont accrue more debt.

shammyman

No thats fine. You answered my question, Highest interest first.

I have no major concerns with paying the debt and being clear within 2 years - majority of it was us being screwed by a "family Member" we were helping, false promises and all that.

Its just getting into the mindset that we can't have the things we always had until we clear soemone else's financal short comings.

Ho Hum