Overpay on credit cards or mortgage

sharon5cc

HI there
Just a thought.
I have £30000 on loans and credit cards, £80000 on a mortgage. After LBM, we can probably overpay by £400 per month. About half the cc is 0%. Is it best to overpay cc or mortgage?

tizerbelle

Personally, pay off the credit cards first then, if you haven't already, build up an emergency fund then overpay mortgage. But it depends on your exact circumstances.

These two MSE articles may help
http://www.moneysavingexpert.com/savings/pay-off-debts
http://www.moneysavingexpert.com/mortgages/mortgages-vs-savings

Tixy

Pay of any of the CC debt that you are being charged interest on first.

Once that it clear and it is all on 0% then I would work out how much you need to pay off the remaining CC debt each month to clear it all before the 0% periods end. If it is less than the £400 then I'd start making some overpayments towards the mortgage.