What to pay off first .

in Debt free diaries
6 replies 561 views
Wanted to ask what people think is best to pay first out of the following.

We have 2 mortgages on our property
1 repayment £24k
1 interest only £171k

And then about £35k unsecured debt.

I know not a good position to be in, I cannot get my head round what is bests to start paying of first bearing in my mind the main mortgage has 17 yrs left on it with not much chance of being able to re-mortgage anytime soon so stuck where we are.

Thanks in advance, please be kind I know what a mess I am in.
Skint Mummy


  • stepuptothepl8stepuptothepl8 Forumite
    913 Posts
    Hi, well done on asking for help, that's the hardest bit..

    I'd pay off the unsecured debt first. Once you've paid that off then you could look at remortgaging, and overpay (OP). It'd be worth posting an SOA to see where your money goes, and where you can make cut backs.

    Good luck x
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  • skintmummyskintmummy Forumite
    190 Posts
    Thanks for the reply, that's what I thought was probably best but just worry about not overpaying the mortgages.
    I won't post an soa as been over that so many times drive myself insane as nowhere else I can cut back. Think I need to work in my shopping budget as sure I can cut more from there will need to face it and go back to Alde from next week tecso is costing my to much each week.
    Skint Mummy
  • BobarellaBobarella Forumite
    10.8K Posts
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    HI skintMummy

    Sorry to hear things are so stressful for you. I appreciate you don't want to so a full SOA but what is the situation with that debt, how does it break down? Just wondering if there is anything you can do to move it around for better rates etc.

    All the best

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  • skintmummyskintmummy Forumite
    190 Posts
    It's spread over a lot of cards, I have no option to move anything around anymore as being declined for more credit on better rates.
    Just think I need to cut every card up and knuckle down and pay stuff off as best I can and try and cut my spending down an sped finally realise we have a problem.
    Skint Mummy
  • enthusiasticsaverenthusiasticsaver Forumite, Ambassador
    13.9K Posts
    Ninth Anniversary 10,000 Posts Name Dropper I've been Money Tipped!
    Providing you are not in arrears on either of your mortgages I would imagine the unsecured debt is on a higher interest rate so you should start on repaying that. Personally with that amount of debt I would cut up the cards and not use them again. Set up a budget and stick to it and cut down on everything or look at ways to increase your income.
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  • ScottishmummyScottishmummy Forumite
    1.2K Posts
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    Go to https://www.whatsthecost.com and put in each of your cards, their interest rates and the minimum payments. This will work out which one to overpay first where you can and give you an end date. Overpaying on the mortgage can come later.
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