Loan repayment apps and other advice
Hello all. So, I know some of this has been discussed but I can't find the thread, so apologies but here it is.
So I currently owe £1690 on my credit card, which is at 0% interest (balance transfer) but only until February 2020 when it will leap up to 22%. I was paying this off nicely but now realise I have also got...
... £6800 of student loan debt, which is only 1.5% which is less than inflation and all that, and the considered (UK) advice is - don't overpay them https://www.moneysavingexpert.com/students/student-loans-repay/
What I need is some advice on which to pay, and ideally, as really good loan repayment calculator because I am *hopeless* at interest.
Any ideas, please?
thanks in advance :)
I would do whatever it takes to pay the credit card debt off by the end of 2019 (that way there is a small cushion of January 2020). Basically 242/mo starting in June (assuming you are not making additional purchases during this time). I wouldn't worry too much about the student loan in the meantime, just pay the minimum required until you get rid of the credit card debt.
I would pay the minimum payment toward student loan and prioritize paying off the CC debt (ideally before the 22% rate increase). The interest you save by paying toward the student loan during the introductory CC period will be quickly exceeded by the comparatively larger interest you have to pay on the CC once the intro period ends.
http://www.whatsthecost.com/snowball.aspx is one calculator that considers an introductory rate and will work well for your two-debt scenario.
Just to add my 0.02: As others have said, prioritise your Credit Card.
Have you called the Student Loans Company? It's been many years since I dealt with them, but I remember my friend from Uni managed to negotiate a deferral and longer loan period with them. He laid it on heavily that despite his income, he couldn't afford their repayments.
This was 19 years ago though, and I know things have changed a lot since the introduction of tuition fees.
Regarding the credit card, is there any reason you can't shift to another Balance Transfer deal if you don't pay it off in time? Sainsburys are offing fee-free balance transfer, so if you're accepted you could shift the Barclaycard to that one, pay the minimum required to clear the debt by the end of the period and possibly increase your payments to SLC to keep them happy?
I feel your pain though, It wasn't easy getting out of student debt 19 years ago... I'd hate to think what it's like now.
I would suggest paying off the credit card debt too first, regarding the student loan, here is an article to help you plan it out https://www.nerdwallet.com/article/loans/student-loans/student-loan-repayment-plans?trk=nw_gn_5.0