Trying to get loans in check and pay less interest- please advise

Peen04

Okay so I’m trying to get serious about saving and get my petty loans in check.

I took out a 1000 personal loan with Halifax, interest is 25%APR

I also have a few payday loans which aren’t huge and I’m paying them off.

I wanted to get a low interest loan or credit card that would help me just pay them all off but none I can find are accepting me, my credit history isn’t awful but it could be better

I have a fixed isa with about £1000 saved in it, which will be free to use in January.

I’m unsure whether I just pay as much as I can off of all my loans and start saving a fresh, or keep saving that and try to pay off the loans at the same time? I’m young, wanting to be a first time buyer soonish. I’ve opened a help to buy isa the other day with £10 in it so far,

SUMMARY
Do I keep the savings I have and put it in the help to buy isa or use it to pay off some of my loan debt and start saving fresh?

Willing2Learn

Peen04 wrote: »

SUMMARY
Do I keep the savings I have and put it in the help to buy isa or use it to pay off some of my loan debt and start saving fresh?

You should use the money you have been allocating to savings to pay off your loans. The interest rates on your PDLs are likely to frightening. You should prioritise your payments toward your PDLs

Why are you borrowing money that you cannot afford? What is wrong with your monthly budget? Are you addressing the fault-lines in your budget?

And welcome to the forum Peen04

Gaz83

If you have a few payday loans, the chances of you being a first-time buyer any time soon are pretty slim.

Pay off as much of the loans as you can with your savings. Prioritise the ones with higher interest.

diggingdude

Your savings currently on some making any interests as your payday loans and Halifax Loan will be far higher

Peen04

Thank you, needed to hear that advice! I will prioritise paying off the pay day loans and then the other one

Then save properly without as many worries!

I basically went from a zero hour contract to full time a year ago and was just a b it silly, the pay day loans aren’t massive few 100, but just playing catch up is a slow process aha