Joined 31.05.16

Poor_Single_lady

I know this is a giant u-turn but I think I am going to pay my credit card off as a priority before the loan.
Once this is at zero it will be a massive boost. I might pay off some of the loan or just pay it off monthly. There are only 7 payments left and the interest is 4% versus 18% credit card.

From April the balance is £1070.
If I know my credit card is paid off I imagine the loan will be easier to stomache. And this way I think I might just learn .
To pay the loan off overnight just does not seem real. I don't think I'm explaining very well but I think this is the right decision Everything considered.
Going to pay the credit card, keep out of the overdraft and see how I get on.

maddiemay

Paying off something at 18% against 4% seems very :money: to me even after missing an hour's cleep:D

Have you looked at the snowball calculator in order to best utilise the amount you have been paying to the CC once you have cleared it?

Boo to the bank messing up, but hope that you have a relaxing and re-charging Sunday, lovely sunny morning here in the wilds:D

enthusiasticsaver

Just caught up on your diary PSL and so pleased you will be getting your bonus as I know you wanted it to reduce your debt.

Much better to pay off a credit card at 18% rather than the loan at 4%. I would close it after to stop you being tempted to spend on it again.

Verbatim

Another one here applauding your decision to pay off the debt with 18% interest and let the 4% loan run. Great thinking. Well done again on your well deserved bonus. Hope it comes soon.

reality_check

I'm so happy you got the loan PSL!! The credit card at 18% is def the best route to go down.

Hope you're well and glad you're back posting on your diary xx

Poor_Single_lady

Thank you for thoughts and kindness everyone. I suppose 18% interest vs almost nil is no contest. It is just painful shelling out £153 a month till October.

I have a busy week coming up so planning on paying off credit card on Friday. And then ushering in a frugal April.

Payments from May are
£88
£100
£40
£153
This is a lot so will need to work hard.

But this position is
1x credit card paid off
1x overdraft paid up

I have a spreadsheet to record spending and I'm reducing my social commitments although there are some this month.

I think as well some of the largest credit card will come off the 0% in July so need to watch out for that.

I will have some exam fees coming up but will think about that next month and make a plan.

enthusiasticsaver

Getting rid of 2 debts, particularly expensive ones are a great achievement PSL. October is not that far away so by Christmas your debts should look a lot lower. The general rule when clearing debt is target the most expensive ones first and at least you know when the 0% deals finish.

coastalchick

great decision PSL - absolute no brainer even if psychologically harder decision to make (clearly those 2 statements contradict themselves - ha ha!)

Had to tell BD off this am - he wanted to put moving fee onto credit card but that attracts a 2% charge! So I said no way, even if he didn't have cash right now, I'd pay it and he could pay me back! (he does have cash but wants to buy a new iPad!!!!)

[Deleted User]

Yay 2 debt's gone!!! Well done PSL.

Dxxx

Poor_Single_lady

Thank you all for the support.
This month will be a battle.

Credit card paid off.

Down to 5 plus loan.