We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

What do I pay off first?

Matt1892
Matt1892 Posts: 9 Forumite
Fifth Anniversary First Post
in Debt-free wannabe
Hi, I have 3 debts I am looking to reduce. 

HSBC credit card - £5500 (21.9%) This is now a loan as basically as they removed the credit from me 
Santander credit card - £2000 (18.9%) 
Lloyds loan - £2200 (9.9%) £45 minimum payment (60 months remaining) 

I have £400 a month to pay additional to these debts what would advise I aim to reduce first? I have paid £1000 off the Santander card in the last 2 months 

Thanks

Comments

  • RAS
    RAS Posts: 35,931 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 2 July 2020 at 11:13PM
    Sort out HSBC first as that has the highest APR, check snowballing.
    If you've have not made a mistake, you've made nothing
  • Disney_Princess85
    Disney_Princess85 Posts: 120 Forumite
    Fifth Anniversary 100 Posts Photogenic Name Dropper
    RAS said:
    Sort out HSBC first as that has the highest APR, check snowballing.
    I agree. It has the highest interest. Pay the minimums on the rest the chuck all of the extra into the one with the highest interest rate. After that move onto to the Sainsbury's card then finally the loan. 
    Emergency Fund: £500/£1000
    Christmas fund 2023: £94.60/£500
    House fund: £ 11188. 32
  • sharpe106
    sharpe106 Posts: 3,558 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    As above others   have said start with highest APR so HSBC and work from there.


★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.7K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.1K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture