Paying off debt advice gratefully received!

debtfreewannabe41

Hi, I'm after some advice. I have a £9.5k credit card debt, owe a friend £1.5k, a £1k overdraft, and a £2.9k personal loan. I have just come into £5k that I want to offset against these. I pay £230 or so per month on the credit card (minimum payment) and £360 on the loan. My bank has told me that they can agree a loan in 3 months time (to make it 6 months' since I last went over my o/draft limit) - which is what I want to do to pay off the credit card (much cheaper). I'm therefore inclined to use the £5k to pay off the personal loan straight away (which would cost me about £2.8k they tell me), and pay back my friend and use the rest to bring my o/draft down, and meantime over the next three months pay the minimum on my credit card until I can secure the personal loan to pay it off. Is this the best thing to do? All advice most gratefully received! Thanks.

elfen

Pay your friend off, pay your overdraft off and use the rest on your credit card debt. DON'T get another loan, you may just end up racking the debt up again. Use the money you would have used for repayments on the loan and put it straight onto the credit card.