Can I pick your brains?

Gemmzie

Not literally...

Mum currently owes:

Credit Cards -
Egg = £620.30 - 0% for another two months
HSBC = £345.38 - 0% for one more month

Loans -
HSBC - £7666.82 @ 7.9% - £168 per month
IF - £6037.28 @ 6.9% (allows overpayments) - £137 per month
Both where originally £8k, taken out last March

She has £300 plus interest to come (if any maths wizz can work out the interest, we've been putting away £25 per month @ 7% - it's a regular saver) in mid July.

She has an empty Egg Money card with a £1k limit and a 6.9% APR.

Where should the £300 go? Should I put the remaining card amounts into Egg Money?

Is it worth putting the HSBC loan onto the IF one to allow overpayments and get some of the interest/PPI back? (It was front loaded)

Also, she's getting a payrise of approx £250 per month which we are throwing straight at the debts. Where should this go? I'm hoping this will help with the loan consolidation too?

Thanks

tesuhoha

I would pay off the HSBC credit card with the £300. If she has substantial savings it would be better if she paid off the HSBC loan with them and as the interest on it is higher than the interest she is being paid from her savings.

Gemmzie

The HSBC loan won't allow overpayments, sorry if I didn't explain that very well

tesuhoha

Could she pay if off completely though?

lynsayjane

Gemz, I'm with tes on the hsbc card, if it's 0% runs out next month get that cleared, then concentrate on the second cc, with a payrise of £250 plus whatever she was managing ot pay off previously it'll be cleared in two months allowing her to seriously overpay her loans.

am no help with the loan consolidation tho my love, good luck to her xx

Gemmzie

tesuhoha wrote: »

Could she pay if off completely though?

Not 100% sure, I figure we write to HSBC and get a final figure then see if IF would give her the extra.

chunky79

Is your mum been a long time HSBC bank user. I have been and i went and consolidated a loan already with them and a CC. I got a 15k loan at 6.9% when they offered me 7.9% i said i think i want to shop around as my mum has just got blah blah blah and they said just let me speak to the manager and then come back with 6.9% If you see what i mean lol

ALso i agree pay the HSBC card off then this will not get any interest added and then pay off the 2nd CC with what ever you can throw at it and hopefully you will get this off before interest is added too or get it right down so interest is barely noticeable.

poodlehorse

I think we are getting confused between HSBC loan and card here. Pay the card off so she only has one card and then get the next one paid off PDQ and try and sort something out with the loans and chuck everything you then have left at them (it, if you can consolidate)

Gemmzie

So isn't it worth moving the Egg card to Egg Money? (If that's even allowed)