Should I pay my debt off early???

mf0u1098

Hi Everyone

I have 3 main debts:

1) Credit cards of approx £3.7k on 0% for next 20 months or so
2) HP left of £4k on car at 13% (I know, I got stung here and feel an idiot...) I've got another 18months left at £145 per month
3) HSBC loan with £9086 left over next 35 months at £260 per month

Basically I know the rule is that you pay off the most expensive debt first but I'm trying to work out at what point it is of no benefit to me to pay it off early and instead save up for a deposit on a house. In total I can currently pay off £1k per month off my debts including the repayments mentioned above.

I believe my HSBC loan is calculated on the rule of 78 as the amount if I repay early at 1/4, 1/2 and 3/4 of the time is the same as the full calculation using the rule of 78. I have worked out (hopefully correctly) that if I was to pay this off early in Dec 2012 rather than the end date of Aug 2014 then with the 2 months interest added in a charge for early redemption then I'd only be about £200-£300 better off. Is this right?

If I put all my extra money to paying off my HP car loan then I could have this gone by Mar 2012, how much better off would I be?

Any help would be greatfully appreciated as I'm hoping to have all this cleared by Dec 2012 and am trying to work out which to wipe first!

Thanks

Jemma xxx

pugzy

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