23 May 2015

A question about : What to pay off first?

Evening,

I am new to this and looking for some advice so any would be greatly appreciated.

I have a few loans and credit cards for various things (cars, home improvements), they are;

1. Tesco C/Card ( 0% remaining for 30 months) - Balance Ј5259
Repay Ј100 p/month

2. Halifax C/Card (0% remaining for 12 months) - BalanceЈ4200
Repay Ј100 p/month

3. M&S Loan (7.9%APR) - Balance Ј8483 - Ј161.12 monthly payment (not sure if I can do extra payments)

4. Halifax Loan (5.9%) - Balance Ј12900 - Ј289 monthly payment

5. Halifax Loan (5.9%) - Balance Ј11600 - Ј231 monthly payment

How would you go about prioritising repaying them? should i just pay minimum payments to the credit cards and use the difference to overpay on the loans?

Do i just concentrate on overpaying on one debt to get rid of 1 at a time?

Thanks

Best answers:

  • I would do is keep the cards to the min payments maybe add another Ј1 to them, the loans seem to be a good apr noticed Halifax has only got 12 mths at 0% even with 12 payments - 1200 that leaves a sum of 3k, ur tesco uve got 30mths thatsv3k paid leaving 2.2k with ur loans you may not get another 0% deal, I would put the extra into an isa or account so you can aim to have a larger amount for the end of the 12 mths then do the same again with the other card.
    Your loans you may be able to overpay or it may be lump sum to finish but for now I would concentrate on the cards x
  • I would check the situation with overpayments on the loans and try putting all the figures in to one of the snowball calculators along with how much you can afford to repay a month. You'll also need to enter the standard APRs after the promo periods end.
    https://www.whatsthecost.com/snowball.aspx
    or
    https://www.stoozing.com/calculator/s...calculator.php
    Then repay them in the order it suggests to minimise interest overall.
  • you dont say how long the loan payments are for ? how disciplined are you at saving ? if you are, can you not approach halifax or m&s to consolidate both loans and the higher interest m&s into one larger loan over a longer period which is nearly always at a lower interest rate therefore saving on the interest, and repay bare minimum on 0% credit cards allowing you to save up and earn interest on savings,
    then pay off 0% interest card just before interest kicks in
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