Cards vs loans

Tomkat1978

Hi

Right thanks to this website I've managed to claim so far 2 ppi claims.

Fantastic right! My new problem which is nice to have is what to pay off / make take a chunk out of first?

I have 2 credit cards & 3 loans.

Paying off the credit cards seems the obvious choice with them being higher interest but paying the loans gives me more disposable cash each month to pay more on the credit. With recently changing jobs I've taken a 9k pay cut so more available each month is attractive too!!
All advice Is helpful thanks

Any advice much appreciated.

dottydoodle

i think you've answered your own question there!
Have you done a revised SOA with the 9k pay cut? will extra disposable income still be disposable?
Good luck

Tixy

Hi and welcome to the forum.

In terms of paying the minimal interest then its best to pay off the higher APRs first.
But I would first do a detailed budget (statement of affairs) to see whether you will be able to afford the monthly payments of the 3 loans on your reduced income.

We recommend this link for working out your statement of affairs (remember to budget for items you don't spend on every month - e.g. 1/12 of an annual cost should go in your monthly budget) http://www.stoozing.com/msoc/soacalc.php

Tomkat1978

Hi did a SOA before I accepted the job so can still afford the loans with paycut.