What shall I do please?

sandybaby

I have a £3200 bill with my nationwide Visa and have a loan for £4000, total payable after 4 years of £6081. I have luckily come into £3000 and don't know which to try paying off first. I've spoken to the loan company who said if I pay off £3000 they will continue to collect the £100 odd per month until the remainign £1000 is cleared. Now I don't know which one is the better one to pay off, or whether to do half and half. Any help appreciated. Thank you.

Buffythedebtslayer

I would look at which is the higher interest rate, probably the cc?

and then pay off the loan very quickly? - pay the amount plus the amount you would have paid the cc off with too. hope that makes sense I need my bed!

and well done on the 3000 pounds very nice!!

oh and welcome!

Buffy
xx

chevalier

if you go to www.whatsthecost.com then you can put in the loan amounts and the apr's to see which one you will pay the most interest on. Whichever one it is pay the 3k off that. However with the loan make sure that you don't get penalised for either making the overpayment, or for finishing the loan early
chev

doodledo_2

Congratulations on the £3k :T

Like the OP has said I would check out which has the highest interest rate.

sandybaby

Thank you for you replies. The cost website is scary I will have to pay back £5745 over many years for my cc bill which is higher than the loan. I think this is the way to go but I thought I would prefer to be free of the loan first. I will think again tomorrow when I'm not so tired! and thanks again.