Advice please

yaweh

Hi,now take it easy because i am new to all this,i have only small debts.....cc£600 and overdraft£700,i have savings of £800,would i be best paying some of my debts off or just continue to save....any advice would be great

camuk81

Pay off your debts.

If you have a credit card at say 17.9% apr, you get 17.9% of debt calculated. If the savings is say 4% you earn a lot less then you have on the credit cards interest per month.


Try comparing your statements and see for yourself.

Unless its a 0% then save and clear at the end of the 0%

cottonhead

I would use the savings to clear the credit card. The interest paid on the savings will be much lower than the credit card interest is charging you, so month by month you will gradually be losing money. Then tackle the overdraft. That you could probably do by calling the bank and asking them to decrease it by a set amount each month until its gone. You should be debt free in no time.