What is my best option?

[Spurs81]

i currently have 2 credit cards, one with egg (�2000 balance), and the other with tesco (�3000 balance). these both are interest free until jan 2009. I also have a loan with halifax for �5000. I am paying �135 pm on this loan which is for seven years including payment protection which was added as a loan. so total repayment for this is approx �11000. I am paying �120 pm on credit cards off balance each month. can anyone suggest any way I can lower these payments or maybe pay all off quicker? after deductions i have approx �400 pm spare. many thanks.

[bednobs]

if you lower the payments it will take longer to pay off.

[froggequene]

I agree with bednobs lowering the payments isn't an option.

You don't appear to have taken into account the interest on the 7 year loan, so you will be paying a great deal more then 5000 pounds back.

With regard to the credit cards, in order to continue taking advantage of 0% deals you'll have to apply for more credit cards in either November or December 2008.

I would get rid of the payment protection & put that money towards the loan.

Go to the library & borrow a copy of Martin Lewis' Money Diet book or visit the website http://www.moneysavingexpert.com/. You need to look at minimising your current expenses - see if you can make savings on rent or utilities, even ordinary things like bringing your own lunch to work every day can make a difference.

[ceejay123]

I was going to be flippant and advise you to go and slit your wrists but I can't be like that BUT what you need to do at the end of this experience is take stock!!!
Dickens spoke of money matters through "Mr Micawber" who said something like this;- "weekly income �1 weekly outgoing �1.02 result MISERY. Weekly income �1 weekly outgoing 98p, result HAPPINESS"
If your outgoing is within your income you will NEVER EVER have any money worries!!
Service a debt within you income but never borrow to do it!!
Chris 62 and debt free at last!!

[kujawski]

bollox ive just borrowed 5 million,
what a ****!