Debt Priorities

kexy

I'm currently in debt to the tune of around £10k, as explained in this thread, I have a target to clear £7k of it this year, working towards applying for a mortgage.

Pure decent financial sense would say to pay of whichever debt attracts the highest interest first. However, is there a hierarchy of debt types whereby one debt might look worse to a mortgage provider than another?

I have a Personal Loan, Overdraft and Credit Card - should I target my £7k towards the highest interest first or is there a less desirable debt amongst those?

I hope that question makes sense. And thank you in advance

Puddylove

Hi
It's hard to comment without knowing the respective balances, the overdraft and loan charges, or the length of time you have 0% left on the credit card.

moohound

I think being constantly in overdraft looks bad, makes you look like you can't manage your money. But I would apply the snowball method and pay the most off in the shortest time and pay the least interest if it was me.

I see the deposit is being covered by the rent you get back.