What To Do??

rusty-london

After reading numerous posts on here over the past couple of years, I had a kind of Lightbulb moment a couple of years and am currently working hard on clearing all my debts.
My debt free date is March 2009, but possibly sooner

My current problem is not so much a problem, more a dilema.

I have to pay my insurance for my motorbike at the start of next month, it's about £250. Would I be better off to use the £250 that I have earmarked for the insurance to pay off part of one of my debts (I have a rather high interest credit card) and pay the insurance monthly, or should I just pay the insurance in full and carry on as normal trying to pay as much as possible off the debts?

Just for information, the interest on the insurance is about 19.9%APR but the interest in the credit card is about 39.9%:eek:

I know that the card interest is expensive but I didn't have any option but to use it at the time due to a change in circumstances.

Broken_hearted

The card will be better gone in the long run.

rusty-london

That's what I was thinking too, but I wasn't sure it was the right thing to do.

I think getting rid of the CC debt will be a real boost psychologically.

MrsTinks

Mmmmm toughie... I hate the monthly insurance thingies so always pay in full... But you say £250, have you checked that you can't get cashback on quidco or made sure you get a cheaper price?
Ultimately then yes 19.9% APR is better than 39.9%! :eek:

Seaxwyn

Hi Rusty, With the interest on the credit card being so much higher, it looks like a no-brainer to pay your savings off the card now, so long as you can afford the monthly insurance payments.

rusty-london

It's the cheapest quote by about £70, I've spent a bit of time shopping round and it's the best I can find. As for Quidco, I've tried it but they only do cahsback on two of the more expensive motorbike insurers.

I'm wanting to clear off all my debts and pay my insurance and the likes in one hit rather than by DD so with this I will pay the insurance off as soon as I can.