Pay off 0% CCard or pay off loan?

Cookiee

Hi lovely peeps

Need some advice. I have finally had to admit that I am struggling with money whilst OH is off sick with a injured back. He won't be returning for a year or 2 and I am now sinking with our bills on my own.

I called some of my debts to see if they can help. I have the following outstanding excluding my mortgage:
Black horse - £4450 (Loan - 17.9% apr) £140 p/m
Creation finance - £6100 (loan - 12.7% apr) £186 p/m
Barclays - £6000 (credit card - 0% until Aug 2012) £150 p/m minimum payment.

My mortgage has gone through my income etc and have offered me to have an interest only repayment for the next 12 months. I know that it will add on a year to my mortgage but the plan is to use the difference (£200) to pay off one of my other debts in 12 months which will then enable me to save some money up next year to have a child (see other thread about my medical condition) as well as only having 2 other debts left and the money I would have paid into the 3rd debt would then go back into overpaying my mortgage.

Now ... what would you all suggest I do? Pay £350 to the 0% CCard and only have approx £1700 left and get another 0% in 12 months? Pay £340 to my loan (black horse) which would clear my debt in 12 months leaving me £140 a month to save for a child or pay towards one of the other 2 debts.

All helpful comments would be helpful :A

MrsTUS

Plough all your surplus into the debt which has the highest APR. Everytime.

bottleofred

Totally agree with MrsTus, but check if there are any payment penalties for settling the loan early. Always pay off what is going to cost the most though.

Red