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Two loans which to repay first?
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Minty_Badger
Posts: 2 Newbie
I have two loans from family members
Member a 2600 lent in 2013
Member b 2000 lent last November.
Both are at 0%(indefinitely) with an agreement to repay 60pcm.
However I am expecting to come into some more money I have started a new job at a higher salary (and was on emergency tax code(br I think) as hmrc didn't process my leaving properly (I had a week between jobs )so I expect that back.
Im wondering how I shoukd allocate the extra money. Should I repay a chuck of the older loan or should I split it equally or something else. I don't intend to take any more borrowing and I don't have any formal credit products.
Member a 2600 lent in 2013
Member b 2000 lent last November.
Both are at 0%(indefinitely) with an agreement to repay 60pcm.
However I am expecting to come into some more money I have started a new job at a higher salary (and was on emergency tax code(br I think) as hmrc didn't process my leaving properly (I had a week between jobs )so I expect that back.
Im wondering how I shoukd allocate the extra money. Should I repay a chuck of the older loan or should I split it equally or something else. I don't intend to take any more borrowing and I don't have any formal credit products.
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Comments
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Frankly I would repay the older loan first. That seems much fairer as you've had use of the money for a much longer period of time.
Are you sure you don't have any credit products at all? No credit cards or loans is quite possible. But no overdraft, no monthly car insurance payments, no phone contract?I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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No credit card. Or loans No overdraft(I didn't qualify when I opened the account and I never applied since) I can't drive so no car and I have a pay as you go phone.
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I would repay the older loan first. 12 years is a long time to repay so that should take priority. Use the £60 to start building up some savings.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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