Just received my loan...

emmajayne18_2

Hi all,

I have just received the loan from AL into my bank account and I am just trying to decide the best thing to do with it (seeing as I have debt all over the place)

The first thing I am going to do is pay off the 2 credit cards that I have with large interest rates.

That will leave me with about 2k to decide what to do with for the best. I have a 2800 overdraft which charges me about £25 a month in interest charges and accasionally £30-60 when I go over this limit at the end of the month!

I also have a third credit card :eek: that has about 2k on it but at the moment this is interest free.
What I am thinking is if I pay the OD off then that would save me quite a bit in OD charges and going over my limit each month. But..I would still have to pay back the credit card and loan so I would actually be paying off more each month.

Anyone else had this situation with their OD? what have you done about it?
I just want to use my loan money in the best possible way.

Thanks!;)

jonesMUFCforever

Pay the highest charging APR first and snowball the rest.
It just seems a bit crazy to me that you applied for the loan first and now when it has been paid into your account you don't know what to do with it.

You don't seem to know whether you borrowed too much or too little to sort yourself out!

hopeless_case_2

Hi emmajayne18 (same name and spelling as my daughters). Well do you have any other debts as well as the cards? if not i would pay the overdraft also cut down your spending so you dont go over the limit.good saving each month.