Debt Journey Advice - Light at the end of the tunnel

christopherwg

Hi 

After some advice. I’ve been in an awful debt situation for the last decade or so, working hard to keep my head above water and always just managing! I’ve never missed a payment on anything and the mortgage has quite a lot of equity in it.

my goal is to be rid of my credit card and loan debt and I’ve come into a good chunk of money. I’ll get another chunk in early autumn. Both these chunks will allow me to clear my debt and experience living debt free.

All the credit cards are zero % interest until 2025. One of my loans is quite large payment wise (£331 per month). 

What would you advise paying off first? Loans or credit cards? Thinking about my credit score and the best order to clear it in. 

Any tips greatly received! 

enthusiasticsaver

If the cards are zero interest I would clear the loans first as long as you will get rid of the credit cards before the zero interest deal finishes. 

RAS

Also check that you can pay off the loans early without penalty.

christopherwg

enthusiasticsaver said:

If the cards are zero interest I would clear the loans first as long as you will get rid of the credit cards before the zero interest deal finishes. 

Thank you so much! I take it clearing the loans will do my credit score some good?

my score is actually decent because despite having lots of debt - soon to be little! - I never miss a repayment 

RAS

Your credit score doesn't matter much. It is your credit record that is important. So paying a tiny bit over the minimum on credit cards will make you more interesting if you want further 0% deals.