Prioritizing.

M3lba

I've just joined the site, having done my monthly finances, and realize my problems are bigger than I thought.
My Overdraft has gradually reached its maximum, my credit cards (one I use regularly, and 2 I don't use, with a lifetime of balance low interest rate) don't seem to move in much of a downwards direction, and my income is either only just meeting my outgoings or not quite making it.
I've had a quick look around the threads, and have completed the budget planner, but has anyone got any quick tips on prioritizing what to pay off first?
I pay slightly more than the minimum payments on my 2 lifetime cards, I pay as much as possible off the card I use regularly, but my overdraft never seems to get any less and is max'd out every month.
I currently spend more than I earn by around £50 a month, and can see a few ways of cutting this down to live within my means, but which debt should I concentrate on first if there is anything spare.
I have to say that to write everything down has been a bit of a shock, as although I ALWAYS check my statements etc, I had never actually added up my outgoings, incomings and debts.
I think budgeting is going to be THE new word in my vocabulary and i want to do it well.
All tips will be gratefully received.
x

sophie27

Could you post the debt amounts with APR? I know there a low rates but would help!

The snowball calculator is fantastic via the link below and will show you how much interest you would pay. You can play about with it to see what the most effective way is to pay them off:

http://www.whatsthecost.com/snowball.aspx

Lula-Hula

Hello again m3lba,

No doubt there will be experts fighting their way onto your thread very soon & they will be requesting a SOA. This is a very scary thing which basically shows all your income & outgoings in all its naked glory :rolleyes: .

Most peeps on here use what is know as the snowball calculator in order to prioritze debts. The general rule is to pay off the debt with the highest interest first, however this doesnt necessarily work for everyone - me included so it's probably best for you to go the site yourself & have al ook around : www.whatsthecost - it's a direct link just click on it.

Many peeps - me included again - also use a spending diary to keep track of where all those pennies disappear to - very revealing . Can do your own or I use an online freebie one : www.spendingdiary.com - another link to click .

Welcome & good luck on your DFW journey

lula x