Hi all
First not sure if should post this else where on the site, so apologies.
My daughter has got into a financial mess, the reasons for which i understand.
My question is this. I can given her a loan of £10k.  This will allow her to pay off 1 of 2 major debts.
They are
1. A loan she took out 18 months ago which in total (incl interest added up front) = £12199
The outstanding amount is now £9995 as she has repaid £2203.
She has a settlement figure of £8055.
This would save around £1950 on interest payments if she paid it off. The loan is around 10.4% over (i think) 6 yrs. The monthly payments are £170 pm
or should she payoff £9500 on cc @ 4.2 life of balance.
I hope someone is clever enough to work that out. If it is the loan the £170 pm will then go towards the credit card, making around £370 pm to the card
The reason i ask is that with the loan i am not sure if she has already paid so much on the interest that it would be better to run the term

Thanks
Peter

Hi CJ
Thanks for that. It is good to get confirmation of what i was thinking.
Your two points re flexibility and weekly payments are very good which i had not thought of.
She actualy gets paid fortnightly so can make two payments per month.
How the mighty have fallen
Peter

Does your Daughter have the option to balance transfer the CC debt to a 0% card? or is her credit rating poor?

Hi
Thanks for the replies. The original post was to see if paying the loan was the right thing to do as i was concerned that it was "front loaded" with interest and to pay off would not make any sense.


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I did which was very painful. Sadly there are no material goods. As mentioned in my original post i understand the reasons (good father or lousy mentor). Will just say she was covering for her husband and had the sense (eventually) to say "no more".
The one ray of hope behind the clouds is in June her mortgage will be @ 1.5%. A tracker that is  1% above the BOE base rate.
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The figure i mentioned is only half the problem!  I have been a stoozer for a while and when it was good made enough money out of it. Now like most others i scrabble about for titbits. I used to talk to my daughter about stoozing which, has helped her as she has been juggling money around also has a 0% card and it is why she has a LOB card.
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Thats exactly what i have done as part of the solution. Blood thicker than water and all that!


Peter