Where to move money to?

LittleJimmy_2

I have just completed a re-mortgage with Northern Rock and took an extra £5000 to pay off my personal loan with Sainburys, I also owe £1300 on a MBNA BHF credit card, and £800 on my HSBC Gold credit card.

My question is now:

Should I use the additional money sitting in my current account to clear both credit cards and save like a demon to be able to then pay off the loan?

OR

Pay off the credit cards, and then do a super balance transfer from my MBNA card to get the additional monies required to pay off the loan, then the extra money will be lent to me at 0%, later changing this to another credit card to continue the 0%.

I am looking forward to your suggestions.

P.s. For background information I have just been turned down for a B&Q credit card, and have been turned down for others in the past, making me wary of trying to be a credit card tart! I was only applying for the B&Q card because I am having a new kitchen fitted and the insurance company are paying, so I was going to keep their money in a high interest saving account and then pay off the B&Q credit card at the end of the introductory 0% and hopefully pocket the difference?!

Freddie_Snowbits

It is easier to pay the highest interest first, but be careful of paying the loan as their could be penalties.

Being let down for a B&Q card may be a benefit in Kind, what interest rate did they want to charge?

LittleJimmy_2

B&Q was going to be 0% for six months I believe, as mentioned I was going to keep the cash to pay it off in a high interest account until it needed paying.

In regards the loan redemption penalties I was thinking along the same lines as you, so I was considering leaving the remainder of the money I have in a high interest account, and having the loan take payments directly from this account, diminishing returns I know but it takes the strain of the payment out of my current account, or lessens it anyway because I will still need to be topping up the account the loan is payed from.

vansboy

Agree with freddie, here, check the penalties on the Sainsburys loan, before repaying it.

Better clear the cards first, anyway, then you'll still have SOME surplus cash towards the loan.

Sounds to me like you could do with LESS plastic, in the pocket, than more!!

If you clear the cards, but can't reduce the loan, without penalty, do try to make sure the left over cash doesn't dissappear!!

VB

LittleJimmy_2

I know what you mean Vansboy, if I left it in my current card it would drip out till theres nothing left! Also agree with getting less cards, when they are clear one is being cut up, and the other kept at my parents house "just in case!"