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Do I overpay loan or not?
Hi all.
I have found myself in an unfortunate situation and I was just wondering if I could get a bit of advice.
Basically 2 big unforseen bills have come up at once, £616.87 for fixing my car and £399 for fixing my rising damp problem in my house totalling £1015.87 - both of which need to be paid in March.
Now here's the thing, I have the money, but I'm not sure what I should use it for. Basically I'm currently in major budget debt elimination mode right now so I'm overpaying massively in to my debt at the moment. By shuffling things around a bit and missing 2 overpayments (note: normal payments will continue), I can come up with at least £766.52 in March and the remaining £249.35 in April. Not a problem there.
Here is the part that I'm stuck with - I'm currently overpaying in to an egg loan, details are as follows: Outstanding capital: £7866.75, Monthly minimum payment: £300, Final payment date: 02/07/2009, APR: 6.73 pa.
Now here is the crunch... do I pay for my expenses now with the money I have? My alternative, and what I need help working out is what it will cost/save me if I were to put these 2 bills on my 0% BT card (I'm a regular card tart) and put that £1015.87 in to the egg loan as an overpayment?
So do I overpay and 0% BT the bills, or do I just pay them now - both are options, I'm just not sure on which would be more cost effective long run.
Your thoughts would be highly appreciated.
Brett.
I have found myself in an unfortunate situation and I was just wondering if I could get a bit of advice.
Basically 2 big unforseen bills have come up at once, £616.87 for fixing my car and £399 for fixing my rising damp problem in my house totalling £1015.87 - both of which need to be paid in March.
Now here's the thing, I have the money, but I'm not sure what I should use it for. Basically I'm currently in major budget debt elimination mode right now so I'm overpaying massively in to my debt at the moment. By shuffling things around a bit and missing 2 overpayments (note: normal payments will continue), I can come up with at least £766.52 in March and the remaining £249.35 in April. Not a problem there.
Here is the part that I'm stuck with - I'm currently overpaying in to an egg loan, details are as follows: Outstanding capital: £7866.75, Monthly minimum payment: £300, Final payment date: 02/07/2009, APR: 6.73 pa.
Now here is the crunch... do I pay for my expenses now with the money I have? My alternative, and what I need help working out is what it will cost/save me if I were to put these 2 bills on my 0% BT card (I'm a regular card tart) and put that £1015.87 in to the egg loan as an overpayment?
So do I overpay and 0% BT the bills, or do I just pay them now - both are options, I'm just not sure on which would be more cost effective long run.
Your thoughts would be highly appreciated.
Brett.
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