Paying off HP query

piggypot12

We're on a DMP with Stepchange at the minute which we're happy with and one big chunk of our monthly budget is our car which is on an HP agreement with Advantage finance, which is on a silly interest rate, 42% or something I think, we only refinanced this in 2012 and its on a 4 year term paying £257.96 a month which includes our GAP insurance too.

Hubbys wage is made up of a basic amount which the DMP is based on and he then gets bonus + commission on top of that, we want to pay off the HP as well as the debt and clear the HP by end of the year as we'd save so much in interest and be able to clear the debt by early next year if we do this. I know if we get extra money we should put it to the DMP but getting rid of the car payment will make so much difference to our monthly budget and the interest we're being charged is beyond ridiculous. Now is it better to just pay off in chunks monthly as I'm guessing this would reduce the term & interest charged or just to carry on paying as normal and pay off in a lump sum at the end of the year, I take it an HP company wouldn't accept a lump sum reduced offer to end the agreement at the end of the year so we wouldn't ge tthat benefit by waiting?

Thanks, its a bit of a minefield with all this!