Advice needed

Steve00000030

Hi all

I Am after some advice please. I recently inherited £6000 after the death of an uncle.

i/we have various debts which have accumulated through poor judgement and desperation due to my wife having work issues over the past 18 months.

i am wondering what the best thing to do with the money is. Run down of debt is

£4000 loan- 2 years left £183 a month

CC1- £1111 0% interest
CC2 - £1418
CC3 - £1360
CC4 - £1655
CC5 - £1500

i want to take a chunk of the debt of and use the money free up to pay off the other debt.

We generally live month to month and the moment, never miss payments buy it is always a bit stressful.

and advice on the best option would be great! 

Thanks all

sourcrates

I`m assuming all these are running credit agreements and not defaulted accounts, so you could pay your loan off, and free up £183 per month, and put the rest in your savings account.

Wasting it paying off credit cards, that you may very well run up a debt on again, seems pointless to me.

Steve00000030

Yes all CC’s are running amounts on 0%. Paying off the loan would feee up £183 for general living and paying off extra on cards, but then would it be better to take a chunk off the cards and then cancel them and let the loan run its course for 2 more years?

tigergambit

Steve00000030 said:

Yes all CC’s are running amounts on 0%. Paying off the loan would feee up £183 for general living and paying off extra on cards, but then would it be better to take a chunk off the cards and then cancel them and let the loan run its course for 2 more years?

Depends on:

How long do you have the 0% deals for,
what are the minimum payments
and how much interest would you save by paying off the loan early?

(I'm assuming you will close the CCs when you pay them off, won't you?)

ManyWays

What is the interest rate on the loan? 

bcs7

How much is being paid on each of the credit cards?