Which debt should i pay off first?

Farcasting

Hey Everyone I'm new here just signed up I'm ready to start clearing why debt and I'm just unsure of which I should pay off first


I have 4 Debts


Capital One Credit Card - £1389 Balance, £1500 Limit, 30.34% Interest
Vanquis Credit Card - £1395 Balance, £ 1500 Limit, 39.9% APR
TSB Personal Loan - £3152 Balance, £29.9 APR (£216.67/m over 24 months) paid 5 months so far
TSB Overdraft - £3000 Balance, £50 Interest / Overdraft fee per month,


I'm quite good for numbers but unsure of the calculations to do to work out which debt would be best to clear first?


After Household Bills / and the Loan Repayment of £216.67, and the min payments on my credit cards and my overdraft (approx. £150-£160) I have £400-£600 a month spare, should I pay a little bit of them all per month or pay the Vanquis card as its the highest interest or pay the Loan as its the highest balance?


Any help would be greatly appreciated I want to be Debt Free by Feb 17


Cheers,
Marty

gettingtheresometime

Rule of thumb says to pay off the debt with the highest Apr first then when that's paid off, put whatever you were paying to that debt To the debt with the next highest Apr and so on.

In the debt free wannabe world it's called snowballing.use thus calculator to see what I mean...http://www.whatsthecost.com/snowball.aspx

Sometimes physiologically you may need to pay off the smaller debts first but that depends on what type of person you are.

Farcasting

Hey thanks very much I used that calculator and it told me exactly what to pay, thanks so much

[Deleted User]

I'd hit the OD first, as that can be withdrawn at any time.

Then, once the OD has gone, hit the Vanquis Card, as it is the one with the highest APR.

I don't know much you are currently paying per month, but at £400 pm, you can have Vanquis cleared in 4 months, for just £62 interest.

Farcasting

Bedsit_Bob wrote: »

I'd hit the OD first, as that can be withdrawn at any time.

Then, once the OD has gone, hit the Vanquis Card, as it is the one with the highest APR.

I don't know much you are currently paying per month, but at £400 pm, you can have Vanquis cleared in 4 months, for just £62 interest.

Hey I currently pay £50 a month which covers the min payment and interest on both my credit cards

[Deleted User]

Farcasting wrote: »

Hey I currently pay £50 a month which covers the min payment and interest on both my credit cards

Is that £50 per card, or for both cards?

Assuming it is £50 per card, at that rate the Vanquis card will take 70 months to pay off, and cost you £2,089 in interest.

Adding £400 to it (from the £400-£600 a month spare), will get it down to 4 months and £52 in interest.

Adding the £600, will see it cleared in 3 months, for just £28 interest.