what debt to pay off first?

onlyme22

Hiya,
I was wondering if anyone can tell me which debt I should pay off first.. I'm also pregnant and only have 7 more paydays left

I have a credit card which I have 0% interest on until July 2014.
Total amount on the c/c is £850.

I also have a personal loan which has £7500 left on it.

I have been saving like mad to pay off my c/c first then try and plough off some of the loan. I have a full time job as well as a part time cleaning job as well as selling stuff on ebay.

I have managed to save £500 and was planing to make the £350 before Christmas to pay this credit card off but my partner said it's best to pay some off the loan instead of the card as it has 0% and can do another balance trans next year. But I just wanted to clear one debt completely as there is no way I can pay all the £7500 by next April.

Any advise would be great as time isn't on my side! Thanks loads xxx

matttye

What will the APR be on the credit card when the 0% runs out?

What is the APR on the loan?

On the face of it I agree with your partner.. makes sense to pay some off the loan, as you're paying interest on that.

You're not guaranteed to get another 0% card when this one runs out, so a balance transfer might not be possible, but that would obviously be the sensible thing to do if the option is available to you when this 0% offer runs out.

onlyme22

Thank you. I'll have to dig the paperwork to find out the APR. Really want to get rid of the debt as much and as quick as poss

matttye

onlyme22 wrote: »

Thank you. I'll have to dig the paperwork to find out the APR. Really want to get rid of the debt as much and as quick as poss

You'll definitely be getting rid of the debt as quickly as possible (for now at least) by paying off the loan, as you're paying interest on that.