Advice for a newbie

SBx

Hello everyone
I am looking for some advice on how best to tackle our debt. At the moment we have

£1300 catalogue 1
£900 catalogue 2 (husbands)
£1100 next account
£1000 credit card 1
£1200 credit card 2
£1200 overdraft

At the moment we are paying more than the minimum payment to each account monthly. We have a combined income of around £2500.

My husband and I are desperate to buy our first home but we realise we cannot do this without first clearing our debt which should then allow us to save a deposit quicker.

I wonder please if anyone has any advice on what is best to pay off first? Should I continue to make monthly payments or is it more beneficial to try to pay off in lump sums? Hope that makes sense

Thanks for any advice you can give to a newbie who is not (clearly!) financially minded.

Oakdene

Throw as much as you can at the balance which is attracting the highest % of interest. I would reccomend perhaps posting a SOA but I dont know where the link is, someone will be along with the link I am sure

Lucylocks

Agree with Oakdene - prepare a SOA but do so with your other half - you need to be totally honest what is being spent and where. If possible go through the last few bank statements to see where the money is actually going.

Check all your suppliers - make sure you are paying the minimum necessary for utilities, insurance etc. Mobile phones to SIM only contracts can save a lot.

Then budget, budget, budget!!! Give yourself an amount for each category; groceries, entertainment, petrol. Know exactly when your direct debits are going out and know exactly how much you need in your account to cover these. As a reformed character I now religiously check my bank account every day - knowing what I have in there and what what will be going out means I'm in total control. I also use 2 saving accounts to shuffle money around - 1 account is for save-to-spend for things like school uniform etc the other account is an emergency fund only to be used in dire emergencies.

Check out the debt free diaries - they have great tips for saving money and have been a lifesaver for me

Ilona

The usual advice is to pay off the ones with the highest interest first.

It's also advisable to completer a Statement of Affairs, so you can see exactly what you are spending on. There are often cut backs you can make, cut down on frivolous spending, to free up more money to throw at the debts.
http://www.stoozing.com/calculator/soa.php

It's a good idea to do this as a couple, to recognise where the money has gone, and work together as a team.

The good people on here will be able to advise, but we need more information. Complete the SOA and post it here.
Ilona

It can be done.