Best course of action for repayment

michhucknall

Hi all, i've recently come into some money (£3500) and would like some advice on how best to start paying off my debts. The balances are as follows;

Loan - £2000 (10 payments remaining)

(In descending order of interest)
Barclaycard - £1800
Natwest Mastercard - £3000
Virgin Credit Card - £4000

I'm not sure where to start, but i'm thinking i will pay off the £2k loan and spread the remaining £1500 between the three cards and then up my monthly payments on all the cards.

Any advce appreciated, thanks!

bengal-stripe

michhucknall wrote: »

but i'm thinking i will pay off the £2k loan and spread the remaining £1500 between the three cards and then up my monthly payments on all the cards.

Pay off the item(s) first, that come(s) with the highest interest rate.

Usually the rates on a loan are lower than on a CC, so it’s better to pay off the cards first (unless there is a ‘no interest for x months’ deal).