Credit card v loan repayment

robbo2765

I have a 0% credit card with £7k on it with the deal ending Nov 2021. I also have a loan with £6k outstanding over the next 3 years. I have £7k. Should I use this to pay off my loan and save on the interest (4.5%) and switch to another 0% deal in Nov 21? Don't plan on taking any more credit but thinking the credit card balance will have more of an impact on my credit report? Any advice would be appreciated. Thanks

[Deleted User]

Pay off the highest rate debt.

It does matter what form the debt takes.

Fighter1986

Your loan repayments are a fixed monthly outgoing so would factor into your disposable income more rigidly than a credit card balance, where the size of the repayments are largely up to you.

As above, pay off the higher interest rate debt first.

As for whether you want to keep the rest in a savings account or not is up to you but if I were in your position I'd clear as much as the CC as possible once the loan is repaid - balance transfer fees would far exceed any interest you'd earn on a savings account right now. 

phillw

I would only pay the minimum on the 0% credit card & look for a no transfer fee card when it's about to end, although you may not get one for the entire balance so you should try to figure how to pay it off.
I would pay the loan off as quickly as possible and put the spare money in an instant access account with the best return (I think virgin are paying 2.02% on £1000 in their current account).