which debt to clear?

bananah

HI,
I currently have the following debts:

egg loan £10,773.00 320 pcm 7%
a&L loan £24000 483 pcm 12.9%
MS c card £5930 120 pcm 23.9%
egg card £4,940.00 114 pcm 16.9%

I have £10,000 coming to me from some shares, and am looking for the most logical way to use this money.
I am keen to clear as much as possible, and also to reduce my monthly overhead as much as possible. Logically then, I could save myself 320 pcm if I paid off the egg loan, yet the interest rate is good. I think I should clear off one or both of the credit cards, thus knocking out the worst interest offenders. I may be missing the bigger picture, so would really appreciate any feedback.

Thanks

jak

I would clear the ccs with the higest interest rate first. No brainer really. That way you would pay much less overall. Good luckx

peb

looking at the interest rates the M& S one should go first then you should be able to get most of the egg card paid. this will free up a lot to over pay the over two if you can. If you cannot make overpayments then it may be worth considering whether to get rid of the egg thus freeing up the £320 and plough that £320 into the M& S then the egg CC. Try whatsthecost.com as well. Sometimes it can be pyscological though!

Jelly_Babies

With the others on this one, clear the M&S card and clear as much as possible of the Egg card, you could then see if you could get a 0% balance transfer to move the rest off the egg card onto another card?

Broken_hearted

M&S and egg cards with the mony and their normal monthly payment you should be able to get rid of both.

beanielou

Hi & welcome!
M&S first then next highest APR debt.

poorandindenial

Agree - repay highest APR first.

If you want to see the level of difference different repayment approaches make, do the snowball calculator at www.whatsthecost.com. You can also scare yourself into the next decade by putting it in and seeing what would happen if you were only making minimum payments (mine would have taken more than 100 years to clear, by overpaying quite a bit I should be debt free by April 2010 at the latest which is significantly better than still paying once I am dead!!). Even if you can't overpay by much it is amazing how much difference it makes in the end.