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What to pay off first?

3 replies

boringnamechange · 08/12/2011 20:53

My mum is getting some money from the sale of my late grans house and is giving me £1000. I have 3 credit cards - £500 on two - one that the 0% ends in January and one that ends in April. Another one has £1000 on it but is 0% until September. I also have a large credit on my electricity (£700 but pay £123 a month)
My bathroom badly needs done new bathroom suite but work in a diy shop so can get that relitivly cheaply and have someone to fit it.

Im just not sure whats best to pay off first - the cards, some of the elec to bring down my DD a month, or the bathroom. If the bathroom was to wait it would be 6 months till we came back a family holiday thats already booked.

Should I pay off £500 to the one ending soonest and put the other money in a savings account for a bit?

Any advice welcome as I usually end up making the worse decision.
Thanks!

OP posts:
Yorky · 08/12/2011 21:12

If you put £500 off the 0%till Jan card, and £500 off the electric, can you save enough from the reduced DD to clear the £500 off the 0%till April card before April?
If not then I would clear the first card before you get stung for the interest and put the rest in a savings account to earn a tiny amount for you before using it in March/April to clear the 2nd card - if that makes sense?

boringnamechange · 08/12/2011 21:57

Yeah that does make sense and then they all get paid off a little. I think I will phone British Gas and see how much my DD would reduce and if its worth it. I hadnt actually thought of that outcome so thanks thats really helped!
If it doesnt work out I will probably pop it in a savings account.

OP posts:
Lizcat · 09/12/2011 14:48

Pay off the one which ends it's 0% in January, then put money in savings account and pay off each of the others as they get to the end of the 0%. Speak to electric company see if you can get some of credit back or arrange that if it is still there in March you can have it back. Once all the debts are paid of start to save for new bathroom.

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