Post deleted

Hel8411

Post deleted

jen49

Hi Hel
I don't normally offer advice but I'd get the overdraft paid off ASAP followed by 3 of the CC's this would free up 260 ish a month to throw at the remaining debts

HTH

DrEskimo

There are a couple of ways you can help decide which debts to pay off first, for example you can target the debts with the highest interest rates first, or just order them smallest to largest. Generally I think it's advised that you pay off each one in full before proceeding to the next. This will not only free up the monthly cost you were spending on the debt to direct to other debts, but also gives you a psychological boost knowing you have one less debt payment to worry about!

However, I think the first thing you need to do is get a handle on your spending and work out why these debts came about in the first place. It's likely they are a result of spending more than you earn, or not having sufficient savings in place to deal with unexpected costs. It's therefore imperative that you get a good handle on your spending, work out a sensible budget that gives you surplus money each month and start to build some savings.

Many users find completing a Statement of Affairs (SoA) a useful way of highlighting exactly where every pound you earn goes each month. You can find the link below:

https://www.lemonfool.co.uk/financecalculators/soa.php

Remember to fill out so that it reflects you spending as it is now. Not what you think it is or what you hope it is. You can then go through it and work out where you can cut down on your budget (switch energy deal, cancel Sky subscription, move to a Sim only contract for your mobile, reduce takeaways, stop buying lunch at work and prepare it in advance, etc.) to ensure you have surplus money to direct towards overpaying your debts and clearing them.

Some members chose to post their SoA on here to get advice from other members on where they can cut costs.

How much you cut your budget depends on how determined you are to clear all your debts. You could go extreme and live very frugally for a 6-12months and look to clear them as fast as possible. Or you could cut down moderately and clear in 12-18months instead. Important thing to remember is that it is only a short term solution. Once the debts are cleared, you will have that additional money to pay yourself, instead of finance companies, and you can begin to re-think your budget without any debts now.

I would then use the £7,500 to first set aside a small emergency fund of £1,000 if you have no money saved at all, and then the rest towards clearing your debts. Your interest rates are broadly similar across all your debts, so would probably go from smallest to largest.

Hope that helps, and good luck!

jen49

DrEskimo wrote: »

There are a couple of ways you can help decide which debts to pay off first, for example you can target the debts with the highest interest rates first, or just order them smallest to largest. Generally I think it's advised that you pay off each one in full before proceeding to the next. This will not only free up the monthly cost you were spending on the debt to direct to other debts, but also gives you a psychological boost knowing you have one less debt payment to worry about!

However, I think the first thing you need to do is get a handle on your spending and work out why these debts came about in the first place. It's likely they are a result of spending more than you earn, or not having sufficient savings in place to deal with unexpected costs. It's therefore imperative that you get a good handle on your spending, work out a sensible budget that gives you surplus money each month and start to build some savings.

Many users find completing a Statement of Affairs (SoA) a useful way of highlighting exactly where every pound you earn goes each month. You can find the link below:

https://www.lemonfool.co.uk/financecalculators/soa.php

Remember to fill out so that it reflects you spending as it is now. Not what you think it is or what you hope it is. You can then go through it and work out where you can cut down on your budget (switch energy deal, cancel Sky subscription, move to a Sim only contract for your mobile, reduce takeaways, stop buying lunch at work and prepare it in advance, etc.) to ensure you have surplus money to direct towards overpaying your debts and clearing them.

Some members chose to post their SoA on here to get advice from other members on where they can cut costs.

How much you cut your budget depends on how determined you are to clear all your debts. You could go extreme and live very frugally for a 6-12months and look to clear them as fast as possible. Or you could cut down moderately and clear in 12-18months instead. Important thing to remember is that it is only a short term solution. Once the debts are cleared, you will have that additional money to pay yourself, instead of finance companies, and you can begin to re-think your budget without any debts now.

I would then use the £7,500 to first set aside a small emergency fund of £1,000 if you have no money saved at all, and then the rest towards clearing your debts. Your interest rates are broadly similar across all your debts, so would probably go from smallest to largest.

Hope that helps, and good luck!

Put better than me DrEskimo