advice on what to pay first

neverbefore2011

needtopaymydebts wrote: »

NRAM want rid of us as much as we want rid of them!

NRAM are Northern Rock, right? If what you say is true, then call them and haggle!

If your repayment record is so far undamaged, then I suggest your first priority is to maintain a faultless credit history

Just make sure that you can get rid of the credit card debt before it starts charging interest - if your credit history is good, then you will be able to switch cards ad infinitum

In the meantime, unless you can be sure that it will be cheaper to settle your debts, rather than let them run their course, then I would look for the best saving scheme for your surplus income

needtopaymydebts

Yes NRAM is the 'bad' debt part when they separated it. 'bad' debt basically being almost everyone they sold 100% plus mortgages to on the advice that houses were going to continue rising at the rate they were and it would all work out fine! Not as in any missed payments etc. in fact until my maternity leave this year we've always overpaid. Thanks for your help though. I think of always tried to ignore the unsecured loan thinking it would be fine but realistically we can't move until its gone as the increase in interest would be ridiculous! So here's to clearing at least another £22,000 before we move house!!!!!

neverbefore2011

needtopaymydebts wrote: »

So here's to clearing at least another £22,000 before we move house!!!!!

These are the choices we all have to face

If you plough all your surplus income into paying off debts, and then something unexpected happens, you might not be able to re-borrow the money, and that's when the downward spiral begins

Currently, you are managing to service your debts, and it is not easy to calculate the savings you might make by paying them off early

I seriously recommend a Regular Savings account - they pay good interest, and only last for a year at a time

needtopaymydebts

Thanks for your advice and opinions yesterday. When all is said and done I don't think it would be sensible to move house while we have any debt at all. So realistically, while we can't move with the secured loan it would be too expensive to move while the unsecured loan is still there so both need to go.
My goals now are, clear car and clear Credit Card. I think htese are reasonable achievable then I am seriously considering putting aside a small amount of money for emergencies before we begin to clear the Secured loan as this is the smallest of the three then begin overpaying the Unsecured loan. As I understand the small print, once we've made 9 payments towards the mortgage we can take a payment holiday. We've made 4 full payments since our last break so in another 5 months if we really need some money then we can take another mortgage break at that point which would free us up some money if we need it.

I do agree it would be nice to have a small buffer just in case and i'm going to look into what is available although I think the quicker we are in a position to remortgage then the safer we will be in order to protect ourselves against rising interest rates.

Thanks everyone, I will probably return in a few months time with another panic attack about something. It is always great to get different ideas though as it really does focus my goals and give me a set target to achieve.:beer::D