Advice on debts to tackle first

samandmillie

Hi,

I am after some advice as to which debts I should pay off first, I really want to be debt free within the next 2-3yrs (aside from mortgage). Below are the details of my debts, does anyone have any ideas how I should tackle these?

Mint - £145 (aprx £6k balance, unsure of interest rate or credit limit)
Barclayloan - £247.28 (not sure of rate and term left, need to check tomorrow)
Egg - £80.77 (bal = £2,704.50, rate is 21.9%, credit limit £3,150)
Egg - £79 (bal = £2,583.99, rate is 17.9%, credit limit £2,600)
Next account - £300
Parent loan – £2,000
Overdraft - £2,000

The last two are interest free but I really would like to pay off my parents first. From now until June I will have an additional £523.34 per month to pay towards these debts, this will then drop to £333.34 when my mortgage rate changes at the end of June. Does anyone have any ideas how I should tackle this? I aim to boost my income by selling clothes and some other items on Ebay, I also have a couple of bits of jewelllery to sell, I doubt I’d get much but every penny counts. Does anyone have any idea where I could sell this? Whatever extra cash I make I will pay towards these debts.

Many thanks in advance

Numpty_Monkey

The rule of thumb is pay off the highest APR first
A good little tool is the snowball calc
http://www.whatsthecost.com/snowball.aspx?country=uk

But sometimes paying off your family first makes you feel better within yourself, or the smallest ammount, just to get it out of the way and tick off 1 debt

MyLastFiver

samandmillie wrote: »

Hi,

I am after some advice as to which debts I should pay off first, I really want to be debt free within the next 2-3yrs (aside from mortgage). Below are the details of my debts, does anyone have any ideas how I should tackle these?

Mint - £145 (aprx £6k balance, unsure of interest rate or credit limit)
Barclayloan - £247.28 (not sure of rate and term left, need to check tomorrow)
Egg - £80.77 (bal = £2,704.50, rate is 21.9%, credit limit £3,150)
Egg - £79 (bal = £2,583.99, rate is 17.9%, credit limit £2,600)
Next account - £300
Parent loan – £2,000
Overdraft - £2,000

The last two are interest free but I really would like to pay off my parents first. From now until June I will have an additional £523.34 per month to pay towards these debts, this will then drop to £333.34 when my mortgage rate changes at the end of June. Does anyone have any ideas how I should tackle this? I aim to boost my income by selling clothes and some other items on Ebay, I also have a couple of bits of jewelllery to sell, I doubt I’d get much but every penny counts. Does anyone have any idea where I could sell this? Whatever extra cash I make I will pay towards these debts.

Many thanks in advance

If you want to pay your parents off first then do that. Then use the snowball as Numpty says.

Selling jewellery - easy. Go to a jeweller's!

By the way I admire the way you've decided to get yourself organized. Good luck.

samandmillie

Thanks, I will have a look at snowball. I will pay my parents £500 from Feb until May, that debt will then be cleared. I will then have £333 to pay off other debts, should I pay all of that towards the highest interest debt (for instance the Mint card) and keep paying that until the balance is £0 or spread it accross the debts? Thanks

MyLastFiver

samandmillie wrote: »

should I pay all of that towards the highest interest debt (for instance the Mint card) and keep paying that until the balance is £0 or spread it accross the debts? Thanks

Do the maths.

Highest interest first.

mum2one

I can fully see where ur coming from re paying your parents 1st, once u know what money you have left, your account balance and your apr use the snowball link as above it is an absolute godsend, it gives u 2 options smallest debt 1st (this takes longer) or highest apr 1st, I've done that with my cards (have 5), worked it all out so start of month set up debits for the amount set, it is more than the minimum payment.