Advice needed

clareabella

Hi all
I have a dilemma that I hope someone can advise me on
I have quite a bit of debt, a loan of 7,000 (10%) and 2 credit cards which add up to 24,000 (both at 23%).
I have just received back pay of 7000 and am not sure how best to portion it to pay debt. My initial thought is to pay off the loan as it would free up 500 a month and I could then use that 500 to knock my debt down on cc's quicker. Or I could pay it off the cc's but not sure if it would make enough of a difference to the balances to make a difference in the minimum due so I could knock them down quicker. I currently pay the minimum payments

Hope that makes sense and some lovely sensible people can advise, thanks

Aiming_High

What is your APR on each of the debts?

Tixy

What are the balances and limits on the 2 cards?

Because of the difference in APRs you will definitely save the most interest and get debt free quicker if it goes to one of the cards.

DVardysShadow

Paying down a 23% card by 7000 will free up about 130/month. If you can get by with this amount of relief for the time being, it will be the best way overall, with the quickest Debt Free date - you will get a further 500/month relief in approx 15 months when the loan would be paid off anyway.

Use the snowball calculator http://www.makesenseofcards.co.uk/snowcalc.html to play around with the options.