Please help which to pay first?

abbiejade3
Forumite Posts: 5
Forumite

in Credit cards
Hi
I have a the following debts I am trying to tackle and struggling to come up with the best plan. I will be coming into £1500 that I can pay towards these but I don't know which to focus on:
1. Sainsburys credit card, £912.33 balance, 26.48 APR. I pay £30 per month, minimum payment is £20.
2. MBNA, £930 balance 0% for 14 months, that will be next summer, rising to APR 28.9%. Paying minimum.
3. Updraft loan of £5000 for 48 months. Repayed £516.32, through monthly payments of £167.32. Cost of credit is 25.90% per annum but APR 29.20%? Total to repay, £8147.40. States I can repay all or part of the drawdown at anytime and this will trigger recalculation of payments and reduce the loan.
I'm really overwhelmed with it all if anybody could please help much appreciated
Thank you
I have a the following debts I am trying to tackle and struggling to come up with the best plan. I will be coming into £1500 that I can pay towards these but I don't know which to focus on:
1. Sainsburys credit card, £912.33 balance, 26.48 APR. I pay £30 per month, minimum payment is £20.
2. MBNA, £930 balance 0% for 14 months, that will be next summer, rising to APR 28.9%. Paying minimum.
3. Updraft loan of £5000 for 48 months. Repayed £516.32, through monthly payments of £167.32. Cost of credit is 25.90% per annum but APR 29.20%? Total to repay, £8147.40. States I can repay all or part of the drawdown at anytime and this will trigger recalculation of payments and reduce the loan.
I'm really overwhelmed with it all if anybody could please help much appreciated
Thank you
0
Comments
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Hi,your Updraft loan is costing you the most in monthly interest, most of what you pay every month is taken up in interest, would suggest reducing that.Good for you on trying to get on top of things.Y'all take care now.0
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While I agree that the best thing to do is to tackle the debt with the highest interest I also believe that eliminating one debt completely can give you a real boost and making dealing with the rest much easier.
So I'd pay the Sainsbury's card first and then bung as much as possible against the loan. Keep on eye on the approaching date for the end of the 0% card and see what you might do to blitz that before it goes to the higher rate.
My rough calculations suggest that £30 a month is barely making a dent in the Sainsburys card and that paying off the £912 owing on it will only save you about £24 over the course of a year. But you'd have the £30 currently paid to Sainsburys to throw at the loan."Never retract, never explain, never apologise; get things done and let them howl.”
2023 £1 a day £553.26/3650 -
frugalmacdugal said:Hi,your Updraft loan is costing you the most in monthly interest, most of what you pay every month is taken up in interest, would suggest reducing that.Good for you on trying to get on top of things.1
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Brie said:While I agree that the best thing to do is to tackle the debt with the highest interest I also believe that eliminating one debt completely can give you a real boost and making dealing with the rest much easier.
So I'd pay the Sainsbury's card first and then bung as much as possible against the loan. Keep on eye on the approaching date for the end of the 0% card and see what you might do to blitz that before it goes to the higher rate.
My rough calculations suggest that £30 a month is barely making a dent in the Sainsburys card and that paying off the £912 owing on it will only save you about £24 over the course of a year. But you'd have the £30 currently paid to Sainsburys to throw at the loan.0
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