Advice please! Which debt should I pay off first?!

jens84

New to the forum!

Would like some advice as to where i should be concentrating my repayments please!

Current debt:
£1200 - overdraft at 18.28% apr
£2800 - credit card currently at 0% interest until July 2012, then 16.8%

Have been paying the bulk of my roughly £300 pcm budget into my credit card to try and clear as much of the debt as possible before the 0% period ends, but am I better to pay off my overdraft first as it's the card currently accruing interest?

Realise this sounds like the most sensible option as it's the only account I currently have interest charges on, but I am worried if I leave my credit card with a large balance at the end of the 0% offer and am unable to 'tart' onto another 0% card, how I will fare in paying it off! (although I wont have the overdraft repayment to make anymore)

Advice would be greatly appreciated - thanks!

Jen :beer:

InsertWittyName

Pay toward the overdraft.

1. The APR on the overdraft is a lot higher currently, and will be higher even after the 0% ends.
2. You may be able to 'tart' again and shift the credit card balance onto another 0% deal.

njk1012

I would personally clear the overdraft first it is not only the only one generating interest at the moment but it will generate the most interest long term. Also I find that if you pay off a smaller debt first it gives you the motivation and encouragement to start on a bigger one.

I have personally just cleared my overdraft and about halfway through clearing one of two CC's and I found it easier knowing that i was paying them as little extra as possible. Plus there is every chance that you may be able to tart the balance over to another card closer to the time.

Happytogetdebtfree

Morning I agree with the others, I'm assuming the overdraft is £30 a month intrest at £1 per day of course depending who you are with. You could clear your overdraft by feb at 300pcm leaving you 5 months till jilts 0%. Which 330x5 1650 leaving you 1150 to clear you maybe able to transfer to another 0%. I'd definatley be paying the one with intrest first :-)