Advice needed on what debts to clear

Dear Readers
I need some help and advice . i have just received a small windfall of £7000. I have 3 major Debts and I want to clear two of them , but unsure which ones to clear and what would be more beneficial to my credit score/report . That hovers around fair and good . with no bad markers .The Three debts I have are as follows
1 High Interest loan of over 50 %. The amount borrowed 3500 , over 24 months @£242. Paid 12 installments, Settlement figure of approx
2800, saving me just £500 rebate paying off early because interest is loaded on the loan
2 Overdraft of £3500 , pay £5 a day equals £150 month
3 Credit Card @ 16% balance £3500 I am paying £ 150 a month
As mentioned if possible I want to improve my credit score also id possible
Readers and experts thoughts on what I should do please


  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    First Anniversary Name Dropper First Post Photogenic
    edited 3 June 2019 at 6:49PM
    If it were me I would firstly clear that loan with the ghastly 50% rate first.
    Next up would be to clear the overdraft as that can be withdrawn without notice.
    And the remainder I would use to reduce the credit card debt.

    As far as your credit score is concerned.
    A credit score is meaningless as a lender neither uses nor sees your credit score.
    Your credit score is for your eyes only.
    A lender scores you independently against their own criteria and policies using the data held in your credit file, added to the data you submit in a credit application, added to the data they may already hold on you as an existing or returning customer.

    The only important thing to remember is that you want the data in your credit file to have positive indicators. No late payments. No missed payments. Never over your limit. On the electoral register.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

  • Socajam
    Socajam Posts: 1,238 Forumite
    First Post Name Dropper First Anniversary
    I agree with Willing2Learn. That 50% rate is a killer
    Overdraft also could be called in at any time.
    Next take the loan and overdraft payments and pay down the lowest credit card.
    Once that card is cleared, do the same for the next until you only have one left to repay.
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