What to pay off first?

Bella79

Hi all

I will keep it brief, im sure you dont want an essay!

We have two loans details are:

Settlement £10300
Apr 7.7%
35 payment remaining
Monthly repayment £326.20

Settlement £4700
Apr 5.5%
Payments remaining 27
Monthly repayment £179.89

We have been very lucky and have been given £4800 im not sure how to use it, do we pay the lowest loan straight off and redirecting the £179.89 monthly paymen onto the remaining loan as well as another £160 (£666) or pay it off the £10,300 leaving £5600 i then have £4300 in savings i could use (clear us out) leaving £2200, after talking to them this would still leave the repayment at £326 leaving 8 payments this is where we would struggle because i would have to meet the £326 for 8 month plus the £179.80
Or pay the smaller loan straight off redirect the payment to the bigger loan pull my belt in and pay another 340 on top of the 326 per month and clear within about 14 month ? :eek:

Hope all that makes sense! Thank you for taking the time, i just wanna be debt free as quick as possible

Swampy3k

I would suggest clear the smaller loan off, and snowball that amount into the higher loan, for your savings you could take a certain amount such as 3000 and put that towards the larger loan also to make a good dent in that too, still leaves you from being cleaned out as you say, but i'm sure others will differ.

rockm87

agreed, pay off the smaller loan!

Bella79

Thank you for the advice