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Corner turned but still confused
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Red_Alert
Posts: 7 Forumite
Hi all,
Sorry if this is the wrong place but I have been a LONG time reader of this board.
I have various credit card debits but thankfully to the help of this board i got sorted and dont miss any payments. Been moving things over to 0% as and when the opportunity has come around but now i have new questions. I have a debt consolidation loan of £11k @ 14.9%apr. I have a credit card (TSB) at 11.9% and this month have a £600 bonus from work. My car insurance is up in March so there goes the bonus but my question is - am I better off paying the money off my loan and putting my insurance on my cheaper CC? I am confused as what the best option is, on one hand its more debit i dont need, but then I am saving by paying off basically two months off my loan sooner and saving the extra interest.
I know this isnt strictly a DFW question but I feel I have turned to corner (as much as £25k in debt allows) and dont want to trick myself into old habits.
Thank you
Sorry if this is the wrong place but I have been a LONG time reader of this board.
I have various credit card debits but thankfully to the help of this board i got sorted and dont miss any payments. Been moving things over to 0% as and when the opportunity has come around but now i have new questions. I have a debt consolidation loan of £11k @ 14.9%apr. I have a credit card (TSB) at 11.9% and this month have a £600 bonus from work. My car insurance is up in March so there goes the bonus but my question is - am I better off paying the money off my loan and putting my insurance on my cheaper CC? I am confused as what the best option is, on one hand its more debit i dont need, but then I am saving by paying off basically two months off my loan sooner and saving the extra interest.
I know this isnt strictly a DFW question but I feel I have turned to corner (as much as £25k in debt allows) and dont want to trick myself into old habits.
Thank you
0
Comments
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Put the money aside for your insurance.
Continue paying your debts off
If you have any money left over following your insurance being paid, apply that to one of your debts. Which one - depends on if you are doing smallest balance first or highest interest rate first.0 -
Hey Red Alert
Are you working to a budget? It just struck me that how could you have paid your car insurance if you hadn't of got the bonus? Would you have put it on credit card or paid monthly both of which would have cost you more. If you are not working to a budget maybe it would be a good idea to give one a go so you can start saving up for an emergency fund and take account of things like car insurance etc.
https://www.lemonfool.co.uk/financecalculators/soa.php
You are doing well keep going!"Everything comes to him who hustles while he waits" Thomas Edison
Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:0 -
It's not confusing.
Use the £600 to pay your insurance, via your debit card.
And just carry on paying off the debts asap.
A bit of good reading here: https://www.mrmoneymustache.com/2012/04/18/news-flash-your-debt-is-an-emergency/0
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