confused on what to pay off first

mumof3beauts

Hi just wanted advice if poss please.
we have lots of debts, my hubby wasnt the best with money when i met him, he is a lot better now though. i am desperately tying to sort his/ now our debt out we need a mortgage but his credit rating is terrible.
we have cleared a lot of the debt off but have quite a bit left.;
a credit card £2267 left to pay on it
another credit card with 2851 left to pay on it
a bank loan with 8000 left to pay on it

then he has one of those stupid together loans from NRAM which he has 16410 left to pay on (it was 30,000)
and then his nram mortgage which is 93528 he took this out for 35 years before we met and we still have 27 years to pay it :-(

my question is what should i start paying off first? i have been paying 550 a month off the 2267 credit card. as i have been clearing his debts i have transferred the payments we would have been paying off the debts he had to the next debt so we are paying 550 a month off this credit card and then when we have cleared this we will move this payment to the next debt ect, so in daily life we never seem better off but credit wise we are chipping away at it all.

Our circumstances are that we swapped houses with our parents as we needed to upsize and they needed to downsize. Now we are in a situation where they understandably need to make this an official thing as we have just been transferring money into their account to make up to what the mortgage would be if we lived here with a mortgage. They are retiring and need to get this sorted but are happy if we just pay their mortgage as well as our own until we manage to get the mortgage.

We cant get a mortgage because of the hubbys credit rating but will have less money to chip away at the debts as we are paying for two mortgages until we have a good rating to get a mortgage.

I feel like i just dont know what to do for the best? I have looked at the overpayment calculator on this site and so thought if we pay an extra £150 off the mortgage a month that will reduce it a lot but we would have less to pay off the credit cards. the credit cards and loans are what affect credit ratings more arent they? so do i put all our extra money on clearing the credit cards and loans rather than off the mortgage or split it 50/50? aaaaaaahhhhh I really really hate debt just seems like I will never be able to get us out of this :-(

DCFC79

Forget what affects the credit ratings as the number isn't seen by lenders, what matters is what's on the credit history.

What are the apr% for the 2 cards ? It's suggested on the debt free board to pay off more on the highest Apr eg pay a little more than the main on the lowest apr card and as much as you with the highest Apr card.

And what's the loan Apr ?

You might want to post an soa on the debt free board.

Some good advice by Anthorn.

Anthorn

You need to do the math and based on that decide on what you want to do. Do you want to reduce the interest you pay or do you want to reduce your monthly outgoing?


It makes sense to pay off the cards with the highest APR first because that reduces the interest you pay. But ... if you want to reduce your monthly outgoing it might make more sense to pay off the smallest loans first because they will be paid off quicker and therefore the monthly outgoing will reduce quicker. As I said, you need to do the math.

mumof3beauts

thank you x i will have a look now, just cant see the wood for the trees at the moment so thanks for the advice x i will have a look at the debt free board now, new to this forum you all seem extremely helpful so thank you x

DCFC79

mumof3beauts wrote: »

thank you x i will have a look now, just cant see the wood for the trees at the moment so thanks for the advice x i will have a look at the debt free board now, new to this forum you all seem extremely helpful so thank you x

Yes it might look like that for a while