Best way advice please.

Highlanddream

I have 5 grand heading my way in September, I want to use this to pay down some debts - I know it's a way ahead but it keeps me going on my journey, lol. 

I have 3 credit cards, all with approximately £2,000 ( at the moment) on each at 0% until mid next year. 
I have a car loan, by September, it will be down to £1000 - very little interest per month now, approx £2 a month.  It finishes in Feb next year. 
I have a personal loan of ( by then) £5000 and pay approximately £33 a month interest on it. It will have 14 months left to go by Sept. 

Which would you pay off first with this cash please? 

enthusiasticsaver

I would pay off the personal loan given the cards are 0% and the car loan almost gone. 

Highlanddream

I keep changing my mind. I worry I won't be able to pay off the cards in time for the 0%. if I pay the loan, that will release 300 a month to pay off the cards. If I pay the cards off ...... I keep going around in circles. Thank you Enthusiaticsaver! 

enthusiasticsaver

As you say you will have spare money left after the loan repaid to put towards the credit cards and you will also have the car loan repayment after February 2025. If all else fails you can get another 0% deal for the cards in June 2025 as your debt will be much lower then with the loans gone and the cards presumably reduced.  How much do you pay towards them now? 

Mark_d

You should pay off the personal loan because that charges the most interest.  By mid 2025 your only debt will be your credit cards.  You can part-pay this amount back using the money you're saving from not paying loads.  You can potentially get another 0% balance transfer deal at that point

Highlanddream

I suppose I am scared I won't get another 0%. Ok thank you, I will do that. I am not paying much on the cards - the minimum, so approx 100 a month in total. I am just finishing paying off another card - down to £195 left now, when that's paid off, hopefully by the end of the month I will start on the next. 

RAS

You do need to check what dates the 0%.deals end, and what rate they revert too.

No point working your butt off to clear the one ending first if the one ending 2 months later reverts to a much higher rate.

Highlanddream

They all finish May to August. I could probably pay off the one finishing first before it did finish. Well with the extra 300 I definitely would. My car loan costs 200 a month. I was planning to keep putting the 200 a month away for another car so I don't have to borrow again, or am I better whacking that off the debt too until it's all paid off? 

enthusiasticsaver

Highlanddream said:

They all finish May to August. I could probably pay off the one finishing first before it did finish. Well with the extra 300 I definitely would. My car loan costs 200 a month. I was planning to keep putting the 200 a month away for another car so I don't have to borrow again, or am I better whacking that off the debt too until it's all paid off? 

Yes clear the debt first then start saving for a new car.