Best way to pay off my Debt ?

coops024

Hi All,

I've had a thought on how I could (potentially) reduce my debt faster and wanted your opinions please

I have this A&L Loan with £12,000 still outstanding @5.5% (very good rate I know) but I'm not allowed to make overpayments and theres an early repayment charge on it :mad: so I'm stuck with it ?

I've been saving to pay this off and have managed to save just over half (£6000) so far in an ISA to ern the best intrest ...

Anyway my thoughts were ... should I pay the loan off using the £6000 saved and putting the rest on a 0% credit card ? I can tart the ballance after the 0% offer finishes but more importantly I can overpay :T

Will this be the most effective way ? or am I better off just saving as I am ?

Thanks for any responces !!

peb

I think, however annoying it is, it is best to carry on as you are. There is no guarantee that you will be able to successfully tart the way credit is at the moment. If you can earn a decent amount of tax free interest on your savings you will win in the end. Well done for saving £6k though!

coops024

Hmmm I guess ur right .. It just never seemes to go down !! (even tho savings are going up )

I'm sure my credit rating is very good as I've never missed any payments for anything so would it be an idea to apply for a card and see how much credit I get ? or are you saying that in say 12 months time when I would need to tart then it might not be as easy to get credit ?

Thx

GeorgeUK

I suppose you could ask for an early settlement figure just to see the lie of the land - doesn't mean you need to pay it. If you're not too far into the loan it may be worthwhile.