Q&A

Answer a question


29 June 2009

How do I structure my finances..for now?

Thanks to lovemoney.com, I've managed to get on paper exactly where I stand on a few things and now I need some advice to take me to the next level... I've got about £6k in savings and my debt make-up is something like this (the loan amounts are settlement figures as at today 29/06): Loan: £3,078.43, £112.62 per month, 28.9% APR Loan: £1,801.90, £89.34 per month, 14.01% APR CC: £2,893.73, £75 per month, 23.9% APR I desperately want to clear my debt and am thinking of taking the "snowball" approach for my CC. How? By paying off the larger loan from my savings (as rates are rubbish) and taking that extra bit to pay off the CC as quickly as possible. Tempted also to pay off the other loan early at some point. I intend to save c. £150-£200 a month as an aside.... So, in general terms, my question(s) are: 1) Is it wise to pay off a loan from savings? 2) My credit rating is poor so will the above steps contribute towards improving it or should I undertake another strategy? Cheers

  • REPORT This comment has been reported.

23 Answers

Answers

Be the first to answer

Do you want to answer this question? You need to be signed in for this feature

Answer a question

Be the first to ask a question

  • {{ question.title }}

    {{ question.authorName }} On

    {{ question.answerCount }} Answers

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom.


Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards.


While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.