Pay 0% Credit Cards off or Over Pay on Mortgage

Lindyloo1980

Good Evening,
Any advise would greatly be received on this issue I will try to keep it as brief as I can!! We have a part endowment part repayment mortgage which we had been making over payments to the amount of £8000. Due to a not very nice garage selling us a dodgy car we ended up having to borrow £6000 to sort out another car. (Yes we did look into the legal side of all this that's another story!). We have managed to incurr about £1500 of debts on credit cards with various things all going wrong at once. These are currently on 0% but not for much longer. We have some shares we have managed to cash in, my question is do we clear the credit cards or put back into overpayments on the mortgage as it was a real pain to get this money out as apparently the FSA have changed the rules. Our endowment side matures in December and the overpayments were to try and allow for any shortfall, and the repayment side of it runs until 2017 but we are now thinking, it might be better to remortgage as we do need some work done on the house and allow for any shortfall in the mortgage?
Any advise on this matter would be gladly received.
Thank you for reading.
Lindyloo

[Deleted User]

Pay the highest rate debt first.

Gentoo365

Deleted_User wrote: »

Pay the highest rate debt first.

The difficulty is that if you take a single point in time. The rate may be higher on the mortgage. However over the life of the remaining debt it may be higher on the card.

0% deals should be considered temporary. There are regulatory investigations into credit cards and some banks are preemptively removing these offers. So there is no guarantee that these offers will be around forever.

So when comparing rates it may need to be a case of looking at the 'normal' rate of the card vs the mortgage.

That is, if the decision was based entirely on rate and nothing else (e.g. cashflow, simplicity of managing debt)

Lindyloo1980

Thanks for the response guys much appreciated. We are not sure when the 0% runs out and am leaning towards to get these cleared. Having said that am concerned about any shortfall we may have on the endownment come December when it matures. But at least that's all we will have to deal with. Feel like we are caught either way and all through know fault of our own.