Order of Debt Payment - Do You Agree?

tesuhoha

Hi Everyone

These are our current debts, interest rates and the order I am paying them in. I should be able to pay £1500 per month until they are paid off. Does anyone see anything wrong in the order? I am paying off some of the 0% first because they run out in August/September and I dont want anymore balance transfers if I can help it.

MBNA OH's name. £2449.69 - 2.9% till Sept 2008 - Pay off first
Egg £2304 - 0% till Aug 2008 Pay off second
Nat West £2757 - 0% till Sept/Oct 2008 Pay off third
Goldfish £4851.23 - 4.9 till Jan 2011 Pay off fourth
MBNA My name £2369 - 0% till Feb 2009 Pay off fifth
Total debt £14730.92

I have already made some payments on these but have not had statements yet. I would add that our money is pooled and always has been so it doesnt matter whose name it is - its just been pointed out to distinguish between the 2 accounts. Would appreciate your input/advice.

Kevicho

tesuhoha wrote: »

Hi Everyone

These are our current debts, interest rates and the order I am paying them in. I should be able to pay £1500 per month until they are paid off. Does anyone see anything wrong in the order? I am paying off some of the 0% first because they run out in August/September and I dont want anymore balance transfers if I can help it.

MBNA OH's name. £2449.69 - 2.9% till Sept 2008 - Pay off first
Egg £2304 - 0% till Aug 2008 Pay off second
Nat West £2757 - 0% till Sept/Oct 2008 Pay off third
Goldfish £4851.23 - 4.9 till Jan 2011 Pay off fourth
MBNA My name £2369 - 0% till Feb 2009 Pay off fifth
Total debt £14730.92

Seems good to me, although could you transfer to the MNBA card some of the goldfish debt? Dont know if thats life of balance, but if any transfer fees are less than the total of interest may be worth a look.

tesuhoha

Kevicho wrote: »

Seems good to me, although could you transfer to the MNBA card some of the goldfish debt? Dont know if thats life of balance, but if any transfer fees are less than the total of interest may be worth a look.

Thanks. The 0% and 2.9% MBNA BT offers were only available up to the end of last month and I took them to the top our our credit limits. The Goldfish card was taken out to give us some breathing space while we paid off the others. At 4.9% its not that bad till we can pay it.

N79

It's really impossible to tell unless you post what the interest rate will be post the 0% periods.

tesuhoha

N79 wrote: »

It's really impossible to tell unless you post what the interest rate will be post the 0% periods.

I hope to pay them all off before the 0% period expires. Otherwise I will get another BT 0% transfer as I have been doing that for a while. Will not let them go onto the normal rate so dont even bother looking it up.

RAS

HAve you stuck them in the snowball on www.whatsthecost.com?

Verbatim

Hi tesuhoha'

Haven't seen you around for a while, or have I just missed your posts somehow?? How are you doing?

If you plan to plan to pay that lot off before the 0% run out you've got some hefty debt shifting months ahead!

good luck.

tesuhoha

I havent been around much though I did post asking for advice on whether we should do up the loft before paying off the debt we have left. The debt has increased because of a large tax bill but have got it all on low rates now. We have decided to put off the loft and to pay it all off first because basically we are sick and tired of being in debt and neither of us can remember the last time we didnt have any. Therefore we are going to throw every penny at it for the next year. I want to pay it off by November at the very least and I will if we can maintain £1500 a month. Then and only then will we start saving to do up the house. Making this decision is going to save us so much money. Its nice to hear from you and get your replies. Thanks.

tesuhoha

I will try the whats the cost.com but it may be a bit complicated to work out so will do it later after dinner.

HairyHandofDartmoor

It makes sense to me as you are doing it by when the 0% will run out rather than current interest rate.

tesuhoha

Yes I probably omitted to say that but it seems the most likely way to me of paying the least money as BT transfer fees can amount to quite a bit. If I paid off the Goldfish first then all the others would run out before I couldpay them off and then I would have to do expensive balance transfers to 0% or pay the higher rate. Thats my reasoning.