What do I clear first?

Dollymix12

Hi

So I'm looking to become debt free, I recently had a few PPI refunds so I used some to pay off a loan that was costing me £410 a month and I have 2k left over. I have £6,800 on a nbna cc and £5,800 on a Lloyds one. The nbna one currently costs £250 a month and Lloyds is £150 a month. I am waiting to hear the out come of 2 other PPI complaints on loans through Lloyds so may have a littl bit more soon but not counting on it.

I plan to pay the 2k off against the mbna card and try to move it to a 0% card! this way I can use the £410 that I have been paying on my loan and the £250 I am currently paying on the card to clear it as quickly as possible. My question is once I have done this should I move the Lloyds card to the mbna card (if I can get 0% balance transfer) that way I can also use the rest of the payment after the minimum to also pay the mbna card, I can then use it all to pay the balance on the £5,800 once I have finished paying the £6,800 one off or should I move the Lloyds card to a loan??

Any advice would be appreciated as I'm not sure what the best way would be, I'm trying to get debt free by next year so I can buy a new house

greensalad

There's a tool for this, use the snowball calculator! http://www.whatsthecost.com/snowball.aspx

Input all your debts, minimum payments and interest rates and the calculator will tell you what is best to pay off, in what order, and when you'll be debt free.

Dollymix12

Hi

I've done the calculator which tells me what I am suggesting I do, eg pay the mbna one off and then concentrate on the Lloyds one my question was really if I should try and move the Lloyds one to a 0% if I can get it or if I should take out a loan to pay off the Lloyds one while I'm concentrating on mbna and then pay the loan off quicker than term

Thanks for the help

ellesbellesxxx

Try and get 0% for sure... What interest rates are cards on at the moment?

Dollymix12

18.9% on both :eek: think I will try to move the mbna one which will be £4.800 once I pay what I've got in the bank off it and then see if mbna can give the 0% for balance transfers so I can move the Lloyds one over, that way I should be able to pay just under a whopping £800 a month off it! Fingers crossed Lloyds give me something back from my PPI on the 2 loans they are reinvestigating i have also contacted HSBC, Santander and Canada Square so hoping I can pay off earlier but at least I know it can be done if I don't get anything else back :T