Using equity from a house sale to repay debts?

skintchick

I agree. Use the equity to get rid of the debts. It's the only sensible option.

Fife_Flyer

Hi,

Thank you all for your suggestions (and for doing the maths for me - I'm not very good at that!). I've been in touch with the bank today and my settlement figure for the personal loan is some £600 less than the outstanding balance, so an unexpected bonus there.

I've decided that I shall pay off the loan, the Capital One and the A & L cards straight away. Still not sure what to do with Barclaycard with my savings earning more interest than I'm paying. Of course, I still need to pay this balance off and at the moment, I reckon it'll take me about 3 and a bit years if I pay a fixed amount and not the minimum each month. Anyone have any strong views on what to do with this one? It's my one remaining 'undecided' action.

Thanks again.

rprinter

2.9% LOB is a great deal. Less than you earn on the rest of your equity sitting in the bank. Pay the minimum. Enjoy this rate for as long as you still have savings in the bank. Plus it won't do your credit file any harm either, leaving this one sitting there, for when you apply for a mortgage again.

This is like stoozing, borrowing money @ 0% CC sticking it in the bank to earn free money! (there is a board on this)

(presume you've got a Direct Debit for this, don't risk charges for cheques arriving late etc)

Fife_Flyer

Yes, it does seem to make more sense to continue carrying the balance on the Barclaycard and pay it off at the minimum payment. I've always made payments by Direct Debit on this one, so no worries there.

I'd just like to say a big thank you to everyone that has helped me out with this. Unless anyone has anything to add, I think I'll close this thread now, although I may be back to seek advice on slashing those bills!