Looking to reduce debt and interest

Philip5803

Hi all,

not got massive debt apart from the mortgage but my situation is I have two loans, one with Tesco which has a balance of £3.5k and another with nationwide which has £1.2k. The Tesco loan has an interest rate of 4% and the nationwide has an interest rate of 7%. 

my income is £2,900 per month, I’m currently paying the nationwide loan back £600 per month so the balance will be cleared within two months and the Tesco bank loan is being paid back £130 a month so will take abit longer.

just wondered what would be the best way to consolate them and have lower interest would a 0% credit card work?

fatbelly

At 4% apr I wouldn't worry about it. Just keep making the contractual payments.

Any surplus put in a savings account.

kimwp

If you do go down that route, check there are no penalties for paying your loan off earlier. Also what the balance transfer fee is - if it's 4% and you'll pay a 4% loan off in less than a year, it would actually cost you more to move the loan to the 0% card.

MFWannabe

At 4% I’d let it run its course; once you’ve paid off the Nationwide you could chuck everything you can at the Tesco and you’ll pay it off in 6 months after paying off Nationwide