which to pay off next?

Highlanddream

Nearly finished paying off the next CC, getting there at long last. 

 I will have a CC with 1800 on it at 0% until April 27 and a loan with 38 months, approx 8000 at 5.9%. I can't decide which to pay off next, admittedly it will only take me a couple of months to pay the CC off but I am tempting to leave it running and pay the loan off next ? 

What are your thoughts please? Mentally it would feel good paying off the CC but it has such a long 0% left. 

Brie

Do you have a plan to pay off the CC when you get close to the end of the 0% period?  If you don't then the interest is likely to leap up to some silly amount on whatever is remaining.  

I assume you have a minimum DD set up for it.  Now working on the assumption that the minimum is 2% of the balance that would mean that currently you are paying about £36 a month.  If instead you paid £90 a month it would be gone by April 27.  That means you are completely in control of the situation.  And that is always a big relief in my books!

An alternative that I do is to pay a set amount above the minimum so maybe £50 which will leave you more money to throw at the loan but still be chipping away at the CC debt as well.  So rather than the decreasing minimum leaving you with about £1200 to pay off in April 27 you would only owe £1000.  Not a huge difference but better.  

So whilst I agree that paying off the loan first seems the best option knowing what you'll be able to do in 20 months time will be the deciding factor.  

Highlanddream

I should be able to pay the loan off in approximately 8 months, I currently pay £50 on the CC. I could pay off the CC in two months. 

badmemory

I think the problem is the same as it always is.  Can you trust yourself & your circumstances enough to stick to the plan.  If you can than the interest bearing loan would come first, making sure you leave yourself enough time to pay off the CC before it gets interest.

ManyWays

Clear the card first, its easier, needs to be done and good to get it out of the way. The loan interest rate isnt that bad to deviate from the cards-first approach

Highlanddream

Must admit, being down to one to clear is very appealing. Thank you wonderful people

RAS

Look forward to your celebration.

Highlanddream

RAS said:

Look forward to your celebration.

It is a while off yet unfortunately, it will slow down over the winter due to bdays, xmas, tax and car MOT & service  - all over a couple of months. I decided I would keep the overpayments back just to make sure I had enough. I do have small pots as well but worried there isn't enough to cover everything.  Any spare after everything is paid will go straight off debts. I should be debt free by the end of next year.