I have a loan of £1400 (8 months left), another loan of £2240 (9 months left) and a overdraft of £500 (I know scary alot of debt!) Anyway I have got £2400 how should I use it to pay back some of it???
2007-12-21 06:01:32 · 19 answers · asked by lazycat 2 in Business & Finance ➔ Personal Finance
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2007-12-21 06:18:33 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If I were in your shoes, lemme see--hmmm I would pay the overdraft because they will charge the most if you dont clear that one out. That will probably end up with some charges so be prepared to pay more than 500.
So now- you have- lets see, maybe 1850, give or take a
few pounds.
Did you say you have 2400 to pay these debts or did you need some for your expenses.(Reread question) No you didnt. It makes a big difference. If you have that money to pay debts only, I would clear the 1400 next and put every single penny leftover on the 2240.
Now you only have one debt left. Think interests. That is money you do not want to pay so keep it as little as possible.
2007-12-21 06:16:55 · answer #2 · answered by QuiteNewHere 7 · 0⤊ 0⤋
ok both your loans are well into the payment plan so very little interest left to pay so i would clear your over draft top priority as that will defo save you the most in interest charges i would then clear the smaller loan out right and i would be tempted to let the other loan run its course if you can afford it each month and leave the other cash in your account or alternatively pay as much off the 2240 as you can with the remainder. if any of the debt is on a credit or store card then prioritise paying that of before paying off any fix term loan.
and dont worry yourself to much ut isnt really alot :)
2007-12-21 06:12:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
First, pay off the overdraft. Then pay down the loan that carries the highest interest rate. If the rate is the same, pay down the loan with 9 months left
Happy Holidays!
2007-12-21 06:05:20 · answer #4 · answered by jwishz 7 · 2⤊ 0⤋
I would pay the overdraft off then I would pay a proportion of each in comparison to how much you owe for example, pay £1178 off the £2240 one (62%) and then the remaining £722 off the £1400 one.
2007-12-21 06:10:45 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Pay off both the overdraft and the smaller loan, then you'll only have one loan to keep up with. I know this sound anti-intuitive, but it's really the best way.
2007-12-21 06:05:36 · answer #6 · answered by Al F 1 · 0⤊ 0⤋
pay the 14oo and the 500 then put the rest on the 2240. that way you will only have one debt to pay and the other 2 will be paid off
2007-12-21 06:05:10 · answer #7 · answered by jaws65 5 · 1⤊ 0⤋
Overdraft first, then some on the loan with the highest interest
2007-12-21 06:04:27 · answer #8 · answered by OOO! I know! I know! 5 · 2⤊ 0⤋
I think you should pay the overdraft first (That means over drawing on your bank account here in the U.S.).
Then make your regular monthly payments.
2007-12-21 06:05:26 · answer #9 · answered by acea 5 · 0⤊ 0⤋
which ever one will cost you the mist in the long run. i.e if the overdraft has the highest interest rate, pay that one first. and work in reverse.
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2007-12-21 06:05:47 · answer #10 · answered by Klick 5 · 0⤊ 0⤋
overdraft first then a portion of the others to keep everybody happy
2007-12-21 06:06:15 · answer #11 · answered by Anonymous · 0⤊ 0⤋