Clearing loan and credit card for finance

Postmanplod

Not sure if this is the right place really, apologies if it isn't.

Ok

I have £4900 outstanding on a Halifax clarity loan with 16% apr.

Currently I have a little over 40 monthly payments of just over £140 left.

I can make additional payments at anytime with no penalties. Currently I haven't made any additional payments

I initially took a £6000 loan over 60 months for a newer car.

Ok

I also have a Halifax credit card, £3000 limit, initially with 18months 0% apr. then 18% iirc.

I have 6 months left interest free, and a reducing balance of £2100 currently.

I pay between £25 and £50 a week from the credit card.

I plan on switching to a further 18month 0% apr balance transfer credit card when my Halifax card has a month left.

I wish to figure out the best way of quickly reducing both of these balances to £0 or as close as when I then want to take out car finance, again ideally with Halifax for between £7000 and £8000.

They offer a fixed 10% apr for car finance for existing online customers.

My credit history wasn't the best due to mistakes I made in my late teens, and now 15 years later things are heading up.

I hadn't had any loans or credit cards until a year ago, hadn't even tried.

I have a couple of mobile phone contracts and car insurances.

I haven't missed a payment on anything for over 8 years.

Any advice appreciated.

I maybe have £100 a month spare after living, bills, loan payments etc.

Thanks again, I want things paid as quickly as I can and keep my credit history heading upwards

HappyMJ

Pay off the existing car loan before getting a new loan for another car.

You've taken a car loan over 60 months. You should keep the car for 60 months in total before considering replacing it.

Keep your excess £100 per month as emergency savings in a high interest account until you have about £5,000 (or between you if part of a couple) in that account. I say £5,000 as that won't affect any benefits if you were to lose your job and you can claim full benefits whilst still meeting all of your essential expenses for about 6 months.

Postmanplod

Many thanks for the reply.

Yes I wouldn't get another until I had paid that loan or sold the car.

Sadly I have a zafira b, it's only 6 years old, but with all of the fire issues lately and the fact our had to have a new motor and resistor as it had burnt out at Vauxhall , my partner especially doesn't want to drive it with the kids in it.

I can see her point. Currently the car is worth sadly £4k tops thanks to this fire business.

I could sell it and pay the vast majority of the loan.

Thank you