What would you do? Advice needed!

pr33tz

Hi,

Currently I have three loans:

Egg: £7176 @ £320pm ending in 08/09
HSBC: £9558 @ £275pm ending in 10/10
A&L : £13202 @ £405pm ending in 08/10

All of these are @ 6.9% APR and were taken out 2-3 years back. I've come into some money, £14000 to be exact and was wondering which loan(s) I should pay off?

My aim is to reduce my monthly outgoings if possible. All the loans can be paid off without penalty. Any advice welcome, thanks in advance!

Me_Myself_2

Are the figures you have given the actual redemption figures for the loans?

Me_Myself_2

If they are the redemption figs and they are all the same APR, I'd be tempted to clear the smaller ones and then reduced the larger one by whatever's remaining. I would then increase the payment on this loan.

Kevicho

Well the A&L one looks your best bet purely for monthly savings, although if you could pay off the egg loan, put the rest in savings and set up a DD for the 320 a month you will save it will take 9 months to clear (the HSBC loan).

As stated above would definiately be worth checking settlement figures for all 3 loans as you could make lots savings in interest.

pr33tz

Thanks for the respones. All the figures are settlement figures. Unforunately, after paying off a loan(s), that mothly payment will be tied up in another commitment so I won't be able to put it towards the remaining loans.