What would you do??

dorisday

I have just over £14000 left to pay off my mortgage, its variable rate of 5.99% paying about £220 month, I also have a Tesco CC with balance of £5650 owing 0% until October/november and then it goes to 16.9% I have 3 other CC but no balance owing.
What I want to know is would it be best to pay off my mortgage by end of this year and keep paying tesco cc until 0% runs out and try to transfer to another 0% CC. I understand getting cc for balance transfers are getting harder and Im worried I wont get one and then have to pay 16.9% or higher. I already have Barclaycard, Mbna and Post office cc.
If I left the mortgage owing and paid of the Tesco cc interest rates for mortgages may go up as it would take me until end of next year to clear it. Im stuck with variable rates because the balance is quite small.
Any advice out there PLEASE

Dharma_Bunny

Hve you got 0% on the cards that don't have balances?

dorisday

No used them to transfer other balances and paid off so they are back to normal interest charges

MFWannabe

I would say that by the time the 0% deal is up you should have an offer from either Barclaycard or MBNA (they are usually very good for offers); especially if they know you have that much to transfer; remember to factor in how much the transfer fee would be though

NeverAgain_2

If I read your post correctly, you will pay off the remaining £14K of the mortgage and the credit cards to be debt free by the end of next year.

While I agree with the sentiments of you signature, if not the spelling of 'pennies', the cost of becoming debt free in 18 or 20 months will vary little, however you get there.

In other words, at this late stage of debt clearing, by far the biggest cost is the sum outstanding, not the interest.

dorisday

thanks for the replys yes I know I shouldnt think about the interest at this stage, but I well remember the 16% interest on mortgages and how quickly it got there and of course since joining this site and money saving really setting in (I know a bit late isnt it!!) every penny counts and im counting the mortgage interest costs daily.
I do keep getting offers from Barclaycard but only for 6 months so shall have to wait a bit longer and keep up overpaying the mortgage.

anh1904

with such a short mortgage, assuming you are well disciplined, moving the mortgage to an offset (less than 3% with your balance) and paying off the most expensive debt each month would seem a sensible option.

e.g remortgage at about 3% (saves you £400 or so in the next year in interest) every spare penny let it reduce the mortgage balance (which an offset will do anyway) then write a cheque to clear the CC at the last possible minute just before the 0% ends, and the interest rate on your mortgage account will still be pretty low.

chrissie52

but I well remember the 16% interest on mortgages and how quickly it got there

Remember it well, it provoked loss of a house for me (profligate ex - I was only just keeping our head above water!)
But, have just paid off my mortgage (now single!) and can't tell you how much difference it makes to know the house is mine.:)
Which ever you choose to do I wish you well.

fatbelly

dorisday wrote: »

I do keep getting offers from Barclaycard but only for 6 months so shall have to wait a bit longer and keep up overpaying the mortgage.

If you phone saying you intend to cancel a card, you may find you are offered some 'unofficial balance transfer deals' - that's a link to the final page of a long thread on the credit cards board.