Stuck in a miserable job because of debt. Which course of action should I take?

jigga2004

Hey guys,

I am currently in a promotion which is due to end in october this year.

The money is nearly £7000 more a year compared to the job i will go back to.

Now, here is the thing. I really dont want to get stuck in the job i was in for 4 years again when my promotion ends.

I want to move away to Chile. i have some friends there.

However, for me to do this, I have to clear off my overdraft and loan repayments.

I do have a mortgage though. There is 8 years to pay this april on that. i am 28, so i guess 8 years isnt too bad.

However, i dont want to be stuck where i am for another 8 years before i can i have some sense of freedom.

So, the idea is for me to pay off my debts and carry on paying the mortgage even when i am away in chile.

The overdraft is $3,700 a month of which on the current wack, i am using up £3,400

In my previous job, I was in the depths of the overdraft each month.

A thought has hit me though.

1. Is it better to clear off my £3700 by getting a loan?
I pay £62 interest with halifax to pay it off.

or, is it better to clear of my other loan repayments which amount to around, £2000.

Or, the other option is,

to take the money out of my mortgage to pay off the overdraft and loans i have.

Regarding debts. I havent taken on any new debts for over a year and i dont intend to incur anymore. So my current problem is due to debts from 3 years and more ago.

i am handling my money carefully now.

What would you suggest.

Basically, i my intention is to get rid of this debt before my promotion ends, so that if i do go back to my old job, its only enough to be able to work and save for 6 months, which should be enough to live on in chile for a year where living costs are cheap and i have friends there to help me out.

What would you do?

Or better yet, what should i do?

Your help is very much appreciated guys.

Naf

You'd need to do the sums based on the rates you actually have, and that are available to you; but as a general rule;
Overdrafts are the most expensive way to borrow (excluding PDL) can be in the 1000's of %s
CCs are marginally cheaper (not always true) 20-35%
Loans come off cheaper, usually in the teen %s 7-20%
Additional lending on a mortgage tends to be cheapest overall; 3-10%

Figures extremely rough and generalised as I'm not up to date on currently available rates.
I'd suggest incorporating the lot onto your mortgage. The one account, which you then can't simply dip back into like your overdraft, should be easier to manage down too.