Best way to use 15,000

Toonman

Hi, I have been left bit of money, have paid off a few store cards with high interest rates, I now have about 15,000 left.
So was wondering what will be best way to use this to reduce my debts?
Have listed the debts I have left below,

8,000 on a Northern Rock CC @ 6%
4,000 on a EGG CC @ 12%
3,000 on a EGG Blue CC @ 12%
6,000 on a Car Loan @ 11%
3,000 on a MBNA CC @ 8%
450 on a Barclaycard @ 19%

Any help greatly appreciated, or should I put some of the money in a savings account/Isa?

Thanks.

Debt_Free_Chick

Highest rate of interest first, so BCard.

I would then pay off MBNA (explanation in a minute), Egg Blue, Egg CC and chunk off Northern Rock.

Leave the rest for a few weeks then call MBNA to close the account. You should get through to Customer Loyalty who should offer you a low balance transfer rate - possibly even 0%. If they do, take the BT to your current account and pay off the Car Loan. Also, include the remaining NR debt, if the new MBNA rate is lower than the NR rate (6%).

HTH

mrcow

Also, don't forget to transfer any repayment amounts that you were paying off the old debts to the existing ones. This way, you'll actively pay everything off much quicker and save yourself even more money on interest repayments, without having increased your current monthly outgoings.

Otherwise, (if you're anything like me) the money will just evaporate into "disposable income".

bunking_off

Agree with Debt_Free_Chick, but check on the terms for paying off your car loan first - if they operate under "Rule of 78", I *think* you effectively end up paying some of the future interest that you would have done, due to the way it works.

Toonman

Thanks for the replies, will get on doing those this afternoon.
Hopefully get rid of all the debt in about a year :beer: , then think about taking family on nice holiday without paying for it on CC's.

mrcow

Sounds like a good plan.

Good luck.

Joe_Bloggs

Check when your egg (Green) aniversary month is. You may be able to shift some debt back at 0% in that month for 5 months once the initial debt has been paid off.
J_B.