Best way to clear debts?!

ellustellus

hi,i was hoping i could get some advice on clearing my loans,or at least making a start. with the credit crunch i need to get ahead of myself incase of jobloss etc...any help appreciated...
i'll list my debt,

car loan...£129 month,3 1/2 yrs left (borrowed £5300)
natwest loan...£125.36 month,3 years left (borrowed £5000)
black horse secured loan...£248 a month,8 years left (borrowed £18000 roughly)
capital one credit card...£33 a month,owe £1200,limit £1200
natwest mortgage...£510 a month,£79000 left,20 1/2 years left 4.9%

thanks for any help

i clear around £600 a week

CLAPTON

basically
maximise your income
minimise your spending
reduce the APRs where possible



check what APRs of your debts
check whether you can overpay on the loans

then pay as much as possible on the highest APR debt and only the minimum on the others.
that way you will pay the debts off quickest

hboothman

Hi,
I am no expert but one possibility if you do get into trouble is to re-mortgage on an interest only mortgage or part interest part repayment. If you did do this you could also consolidate some or all of your other debt.
It depends on how much equity you have in your property as to whether you'd be able to do it though (and also your credit report).
If you did take this option you should change back to repayment as soon as you could.
Hope this helps

whiteroom184

hboothman wrote: »

Hi,
I am no expert but one possibility if you do get into trouble is to re-mortgage on an interest only mortgage or part interest part repayment. If you did do this you could also consolidate some or all of your other debt.
It depends on how much equity you have in your property as to whether you'd be able to do it though (and also your credit report).
If you did take this option you should change back to repayment as soon as you could.
Hope this helps

use this only as a last resort, as it will be far more expensive long term, have a look at snowballing and best ways to defer your additional income;
http://www.whatsthecost.com/snowball.aspx this is particularly good but there are man others around, you can see years coming off your debt

hope this helps:rolleyes:

Gemma_B_2

Have you considered any of the 0% cards - there are a few good ones, I think Virgin is the best at 0% for 16 months. There will be fee to pay for transfering the balance over from your exisiting cards, but it could be worthwhile depending on what interest you pay currently