Help - do i pay off debt or pay for insurance in lump sum?

couponqueen_2

Long story, but gradually chipping away at £3k debt which is currently on a 0% deal til next July
From selling things on eBay, I've amassed about £500 - do I pay a chunk off my debt or use the cash to pay for dull stuff like insurance (which charges me for paying monthly) which would free up more cash each month to pay off the debt? Pschologically, I'd feel better paying off £500 as I don't know if I'm disciplined enough to pay the extra each month. Am already pretty clued up - cook food from scratch use coupons, etc, can't think of many other ways to save.
Advice much appreciated
Couponqueen

racer256

Hi Couponqueen (cool name by the way!) I would pay off your insurance as they charge 20%-25% interest rather than 0% thats on your current debts. You save more money in the long run. If theres any lft then pay off your debts but make sure you shop around first for your insurance so there is more to pay off. Best Wishes x

couponqueen_2

thanks - its what my head tells me to do and what i used to do when i used to be able to save money!!

(Land_of)_Maz

oh and of course after you've shopped via the screenscrapers about for the best deal, get your insurance thru Quidco... i got £75 cashback on mine!! And a lower quote than the screenscapers got me to boot!!