consolidate or not?

[Mrst]

Hi there, I have a credit union loan of €2,000 with savings of €1,799. I repay this monthly by standing order of €150. I have a credit card bill of €5100 which is incurring interest every month. I just received a small inheritence from a relative of €2,000. My question is this - should I speak with the credit union and increase my loan (by clearing existing loan) to get rid of the credit card? or get rid of the credit union loan and increase the credit card payments? I hope someone can offer some advice.

 

[so-crates]

Hi Mrst,
can you answer the following? It will make it easier to comment on.
1) What is the rate on the CU loan?
2) What is the rate on the credit card?
3) How much are you repaying on your cc at the moment?

In general though CC interest rate is normally higher so your priority should be to get rid of paying the CC debt, particularly at the high rate. As you can't clear it in one go it may be worth looking at clearing what you can and consolidating the rest.