Pay off debt or mortgage first? I'm confused!

ShazllGall

Hi all!
My first post on here. I'll try to make sense! But I need advice...

For the first time in years I have some extra money each month. I have debt payment plans with 5 creditors (£1 -£5) per month (over £20,000 in total owed) and a £75,000 mortgage (4.99%).
I know the typical advice is to pay off debt before saving, but which debt would you pay off first? Should I focus on the creditors, although essentially it isn't 'costing' me as it's a debt plan and interest free? Or over-pay the mortgage? But I would think I'd get a better mortgage deal if the other debt was paid first, but the mortgage is 'costing' more.

Does that make sense? Please help!!
Xx

louloubelle79

Pay off most expensive debt first- how much is it costing you with creditors.? When does your mortgage rate end?

ShazllGall

Thanks for replying.

That's the thing, the debt isn't costing anything because it's a debt plan but the total debt is substantial. My mortgage rate ends toward the end of this year. If I didn't have the debt I'd get a better mortgage rate, but maybe not good enough to balance out what the debt would cost to pay off.

Trentenders

You pay interest on your mortgage and the mortgage debt is secured on your house. Pay the mortgage.

pennystretcher

If you don't have interest on your debt at the moment and you don't expect it to go up anytime soon, pay off your mortgage.. Good luck and keep us posted how you get on. x