Overpaying mortgage v 0% Credit Card

Funkygibbon

Hi,

I wanted to check that I'm doing this right!
I want to overpay my mortgage, currently £120,000 at 2.69% rather than paying off the £10k that is on % credit cards.
We are paying the minimum of the credit cards at the moment.
Or should I be trying to clear the credit cards, they have over 12 months left at the 0% rate.

Thanks

Funkygibbon

getmore4less

It called stoozing.

the issue you have is once the 0% runs out will you have the cash to pay it off?

Funkygibbon

When the 0% runs out we won't have enough to clear all the debts.

Thanks

JimLad

If you havent got the money at the end of the 0% period to pay it off then i would be paying that off for sure as i bet the % on the CC is a lot higher.

The best thing to do is pay the mimumum, but save enough in a savings account that will build up to pay it off at the end. That way your gaining interest on it.

getmore4less

Funkygibbon wrote: »

When the 0% runs out we won't have enough to clear all the debts.

Thanks

Better start saving then, do a backwards cash flow to see how much you need to save and then whats left can go onto other things.


No point saving 2.7% when in 12 month time you will be paying 20%+

£100 @2.69% over 12months saves £2.69 for the year,
£100 @ 20% is £1.67 a month

Funkygibbon

Ok thanks for that.
I will take a look at getting the credit cards cleared first.