Which Loan/card to pay off first.

afcafcafcafc Forumite
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Hey Guys I have some debt on credit cards and need some help on which one I should pay off first. I have saved £2000 to put towards the card but not sure the best way to do it so benefit me.
Here is the debt below -
http://prntscr.com/pcf2zb

Please copy and paste the link above.

So from my point of view it looks like I need to put it towards the Barclays as that is a higher interest rate or the Motnovo car. If any one can help that would be great as I would like to make that payment asap.

Thanks

Replies

  • The Barclays debt as it's by far the highest rate.
  • afcafcafcafc Forumite
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    The Barclays debt as it's by far the highest rate.

    Ok so after I pay the 900 off that would you say the rest should go on the car? Because I may be part exchanging the car in the future. So Barclays would be number 1 then which debt should I put the rest of the money on please?

    Thanks for the reply
  • Yes, the car next, then the remaining debts in the order that the 0% expires.
  • afcafcafcafc Forumite
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    Yes, the car next, then the remaining debts in the order that the 0% expires.

    Ok thanks. So it doesn't matter that I may be part exchanging the car in a few months? I should still put another 1k towards it?
  • It makes no difference, apart from the fact that you save on interest.

    The lower the debt, the less you will have to pay to settle the remaining balance.
  • enthusiasticsaverenthusiasticsaver Forumite, Ambassador
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    I agree that you should target Barclays first then the car even if you are part exchanging it. Maybe look at a 0% money transfer card to finance the new car or save up to replace it.
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  • afcafcafcafc Forumite
    34 Posts
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    I agree that you should target Barclays first then the car even if you are part exchanging it. Maybe look at a 0% money transfer card to finance the new car or save up to replace it.

    Great . Just another question if you don't mind. I have 3.8k left on the car and if I settle early which I cannot it will save me £254. It better for me to pay 1k off this and then carry on paying my monthly amount. Get another 0% credit card if I can and transfer the whole amount over? But obv there will be a transfer fee that may equate to the amount I would have saved.
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