Extra disposable income and repaying debts

lisachester

OK....so going through a short term plus side on the cash flow. I am getting a salary rise and will not be paying rent to my parents just now. I am moving across country with work, but that has been delayed until March and I will not pay for accommodation until next June, when I will be a first time buyer. Until then, I need to work out how best to divvy up my spare cash and am looking for hints and tips.

On the basis that I cover the minimum payments to each every month, I will have about £350-400 spare. I have calculated a very easy way of settling a small loan and credit card using most of this money by October. After this date, I need to work out what is best to do for being mortgage credit-worthy next year. After settling in October, I will be as follows:

disposable income after minimum payments and spending allowance: £420 (ESTIMATED)

remaining: car loan £2710 (but with Egg so can overpay)
graduate overdraft £1454
credit card £2000 @ 0% till March (poss just over; about £50-80)
I really want to do as best I can to reduce balances, but also ensure that I am displaying the best activity on current account statements to present when going for a mortgage (in terms of affordabilities and commitment levels etc.).

Thanks for help in advance, Lisa.

P.s. Within the monthly budget I have allowed before disposable, I will be contributing about £20 a week to savings (not much, I know). At this stage (i.e. October) I will have a £0 balance in the savings as I have plans for the little that is already there!

P.P.S. This is very much a ramble, pls feel free to ask for clarification :rotfl:

lynzpower

hiya lisa

your best bet is always to overpay the absoute most on the debt with the highest interest. And keep min payments on everything else. this will cost you the least in interest, and be quicker to pay everything off asap :j

Has someone got the snowball link?

Molanole

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

Here you go!

lisachester

Thanks guys - I guess that is prob the most obv answer, but you maybe don't realise until someone else points it out! :T

Floss

arrange to reduce your overdraft by a regular amount each payday, then it's going down without much effort....£100 a month & it will make a big hole in it by next June