Car loan dilemma please help

Mogley

Is your car finance 5.59% flat rate or APR? What is your main goal, to save interest or reduce payments? It seems to me you have quite a bit of debt already with £6k on each of your 3 cards plus car finance plus a recent mortgage. You should focus paying as much back on the highest %APR credit you have, overpaying where possible. With the amount of debt you have, I would say it is unlikely you will be accepted for a low interest rate loan but eligibility calculators may help with your decision.

afcafc

Sorry I should have been clearer.
I have a 6k limit on each card. 2 of which are completely clear and I have 1k balance on one.

My main goal is to have save as much as possible and reduce interest. Yes it is 5.59% flat rate.I want to reduce my payments and pay it off quicker.
I just want to know what the best way to go about it is. The. I was thinking about getting a pcp deal to avioid the MOT, service depreciation etc. But I would rather have something I own.

Mogley

afcafc wrote: »

Sorry I should have been clearer.
I have a 6k limit on each card. 2 of which are completely clear and I have 1k balance on one.

That's a better situation than I presumed. Do you have any affiliation to the cards with no balance? Are there any money transfer offers available on them you could make use of? If not why don't you cancel them, wait a couple of months (credit file updated) and apply for a new money transfer card? You would then be able to do something similar to my original reply.

lopsyfa

Are any of the cards still on 0% purchase? Some car finance companies allows you to pay direct with credit card without any charge (I did wth VW finance last year). If yes, you could pay directly with the credit card and save on money transfer fees. Even if it is only one of them on 0%, you can pay like 5-6k off the car finance and ask them to reduce monthly payment and save most of the interest. Or you can use two cards and make two different payments. This will only work out if the cards are 0% and the car finance accepts card.

I saved like 3k interest using this method last year and I have already paid and closed the credit card.

YorkshireBoy

Tarambor wrote: »

With £8800 in car finance plus £12,000 on two credit cards for a total of £20,800 of debt

OP only has £1K of credit card debt. 2 cards are empty. 1 has the £1K debt. All 3 cards have £6K limits.

Taking into account the HP early settlement figure of £7,490, the OP currently has debts totalling £8,490.

System

Ah, just seen the clarification.