Debt Free in sight - advice wanted

peteuk

I am currently changing jobs, however for a few months I am pulling two wages.  We have fought so hard to get totally debt free over the years and now we have the opportunity to break free.
We have two moderate but high interest loans taken out in Sept 19 for vehicles
We have a few credit cards with varying amounts on them. 
There are three small loans which all are due to complete in the next three to four months. 
I am planning to save a little and clear the loans, but which do I clear first the smaller ones or do I save a few months wage and hit the bigger ones?
Thanks

Paddington75

I think the general consensus is to pay off the ones with the highest interest first, however if you are the type of person who likes to see quick results, motivation wise you could pay off the smaller ones first.

CreditCardJunkie

Massive congrats on coming so far! Well done!

Coffeekup

As creditcardjunkie said.... However of they were all going to be paid off at some point this year anyway, putting the money into an emergency fund may be a better choice, especially if you have nothing to fall back on. But that depends on how much interest your going to pay by the time you cleared your debts. 

So if you planned on paying off all debt's by  October for example and you have paid £100 Interest I would personally put it in savings, but if you're going to be paying say £250+ I'd pay it off the debt's with highest Interest.

That being said it's nice to be debt free... When u pay all off, pretend you're still paying 70% of the debt repayments and slam it into savings. 

BabyStepper

You could always play around with the snowball calculator and find out the most efficient way that means you pay the least interest. You are doing so well, sounds like you have it all entirely under control, if you're paying no interest then just save up the extra cash and pay the debts off in lump sums when you're ready. 

CapricornLass

Well done you for getting this far!  Light at the end of the debt tunnel is inspirational in itself.

I think before I paid off anything, I would read the small print of each loan very carefully.  Sometimes with loans you have to pay at least one month's payment in order to pay the loan off early, even if you are paying the whole of the outstanding balance off.  On the larger loans, that could mean quite a bit of money, so you need to do your sums carefully to make sure that the penalty is less than the interest you would be paying over the rest of the loan. Especially if the car loans are going to be finished this year too - I couldn't quite work that bit out!

peteuk

CapricornLass said:

. Especially if the car loans are going to be finished this year too - I couldn't quite work that bit out!

Thanks for the support and apologies that I wasn't very clear.  The car loans are due to finish in Sep 22 and Nov 23.  Taken out in Sep and Nov 19.