Advice on what to pay off first (or save instead)

j8yba

Hello, im a self-employed person with 4 credit cards and a 6.6% loan outstanding.

Ive been really good with the credit cards and have just under £8000 spread across each of them but ALL with 0% interest thanks to stooging advice from this site. I also pay off around £150 to each rather than the minimal amount.

I also have a personal loan I got for a car a few years back on a great 6.6% loan rate, i currently owe £3500 on this.

We've just got married and have mortgage on our current property and are looking to move, but thats another story (mortgage issue!)

I currently have a small amount of money in the business bank account, which ive just left for a "rainy" day, but feel as though perhaps I should clear some of these debts, but am also wary of the possibilty of keeping the money where it is incase times get hard/unforseen cirmcumstances.

I've pondered on several options, so any advice on this would be appreciated...
Option 1 ) Pay off the loan using money from bank.
2) Get a Cash balance transfer from one of the cards at 0% (4% fee) and pay off the loan
3) Pay 50% cash, 50% balance transfer off loan.
4) pay off one of the credit cards (remember all these are on 0% for at least 6 - 9 months, some 12 months)
5) do nothing, save the money for a rainy day
6) move the money into a savings bond
7) rather than pay £150 to each card, focus on clearing one card with larger lum sums each time

Finally, also remember we want to move house, and its looking like were going to need a LARGE deposit, currently we're with the nationalised Mortgage Express, so its like we're starting again from fresh if we move to another provider.

Sorry if it seems like theres a lot of options, but if you think one is the best way to go, or if theres another option ive missed, please let me know.

Thanks in advance.

Tixy

Hi

Rather than pay off all cards equally I'd try to focus payments to one so that hopefully one could be clear by the end of the % period. That would hopefully give you a better chance of getting a second % on that cleared card to shift one of the others to (when the %s are up).

As for the rainy day money, I suppose its depends on how likely you might be to need it for anything else.

If you do consider a % deal to put in the current account and pay off the loan then you might also want to consider the M&S card which you can use via sterling travellers cheques and has a lower fee. That said I'd be wary of having too much debt on 0% deals and risk not being able to pay it off in time or be able to keep moving it around.