Debts advice

hunterross

Hello love the forum and the nice people here

I could really use some advice...

I have about 10 k of debt i need to work at clearing. I have a sporadic income as I run a recording studio so i need to beat those nasty interest charges that keep my progess stagnant. I also earn the odd sub 500 quid maybe once a month doing some web work. Aside from the web work earnings I make around 400-600 from the studio a month (occasionally less)

Heres the catalogue of debts:

3k debt graduate account - Overdraft costs approx £25 per month
3k debt graduate loan - payments of £70 per month
1.5k debt credit card - Interest costs £25 per month
2k debt to studio partner (not urgent to pay back, but would like to start paying off at it as this will change if I rely on his kindness too long...)

The credit card loan interest is quite high - costs roughly 25 quid a month - which matches the payment I make each month to them. I plan to pay off 200 quid in one go next monday..leaveing me with 150 quid to live on till the next bit of cash trickles in.

My out goings each month are rent on my house, rent on the studio and council tax for the house - living in a shared house we've worked out that if i pay council tax then the other bills ppl are paying cancels out, so no need to mess about splitting bills etc. This all comes to 550 quid a month going out of my hands.

I have no savings etc to kill of the interest charges etc. What do you think would be my best approach to killing off these debts. Am i right in prioritising debts that have higher interest rates?

Thank you! Rossy

**purpleprincess**

hunterross wrote:

Hello love the forum and the nice people here

I could really use some advice...

I have about 10 k of debt i need to work at clearing. I have a sporadic income as I run a recording studio so i need to beat those nasty interest charges that keep my progess stagnant. I also earn the odd sub 500 quid maybe once a month doing some web work. Aside from the web work earnings I make around 400-600 from the studio a month (occasionally less)

Heres the catalogue of debts:

3k debt graduate account - Overdraft costs approx £25 per month
3k debt graduate loan - payments of £70 per month
1.5k debt credit card - Interest costs £25 per month
2k debt to studio partner (not urgent to pay back, but would like to start paying off at it as this will change if I rely on his kindness too long...)

The credit card loan interest is quite high - costs roughly 25 quid a month - which matches the payment I make each month to them. I plan to pay off 200 quid in one go next monday..leaveing me with 150 quid to live on till the next bit of cash trickles in.

My out goings each month are rent on my house, rent on the studio and council tax for the house - living in a shared house we've worked out that if i pay council tax then the other bills ppl are paying cancels out, so no need to mess about splitting bills etc. This all comes to 550 quid a month going out of my hands.

I have no savings etc to kill of the interest charges etc. What do you think would be my best approach to killing off these debts. Am i right in prioritising debts that have higher interest rates?

Thank you! Rossy

Hi hunterross! :wave:

Welcome to MSE!!

Could you post a breakdown of your outgoings so that we can see where your money is going?

Well done for your first post!

CLAPTON

post a statement of account , details of your income and spending and debts plus a little about your situation, rent or buying, value of house, and size of mortgage, any children etc.

see
http://forums.moneysavingexpert.com/showthread.html?t=107280
for more details.