Using funds in best way to pay debt off

Andyjflet

Hi, I am also a Dave Ramsey convert.... Love it, love it, love it :-)
I would settle your PCP now and hand back under the 50% rule, so ring up, VT it, use the cash to buy something outright. I'm in the motor trade too. 

spiral_3

Many thanks for your time, comments and thoughts.

Yes I read some Dave Ramsey prompted by positive comments on these boards and interesting he advocates putting an emergency fund in place first of all.

Still mulling over the best permutations but some food for thought here. Certainly the consensus view is to bin off the MBNA and HSBC debt so I've definitely decided to do that and whilst considering what to do regarding the Barclaycard balance and the car PCP (despite one or two people's opinions I won't be 'handing it back' on a VT).

One further development on the PCP front: the finance company responded to my part payment enquiry and I'd say it's quite encouraging in that if I put £2800 in (just over half the existing settlement figure) it drops the monthly payment down to £50 PM from the existing £177 and halves the balloon to £2004 from the existing £4100. Come September if I'd like to buy it finding £2000 then is less daunting than the original £4100.

Thanks again!