Clearing loan debt

foxy-stoat

Credit card with money transfer option - get a few and you can probably bounce around 5 figures.  As long as you dont spend on them, always pay more than the minimum or look to clear it before the intro rate ends you will be ok.

As long as the debt you have amassed wasn't for general day to day living, holidays or expensive unnecessary stuff go for it.  If you have a spending issue then probably best to clear it all when you sell and start saving.

JamesBro

That's great. Thank you. I'll be looking to do this for sure. 
No, the debt was purely for home improvements. I budget for day to day and have a control of things. 
Thanks very much.

Clive_Woody

Is your current mortgage transferable? If so are you looking to sell and move immediately or spend some time in rental?

The reason I ask is that it already sounds like your credit file is quite "busy" and taking out credit cards or other borrowing might not look great to a mortgage lender. Not sure what your current salary is, but if you are looking to move and will need a mortgage then be cautious about your current levels of debt and any new applications.

MinuteNoodles

JamesBro said:

That's great. Thank you. I'll be looking to do this for sure. 
No, the debt was purely for home improvements. I budget for day to day and have a control of things. 
Thanks very much.

Unfortunately £3500 in overdrafts suggests otherwise. I'm in agreement with Clive_Woody, given the amount you owe and the number of people you owe to plus what is a very high level of overdrafts in consistent use you're going to struggle. It might be a case that you sell and can't get a mortgage and maybe have to consider clearing all your debts with the equity then renting for a while. Renting isn't that much more than the total cost of ownership of a house, in the case of your current place it probably would've been a lot cheaper, so it's not the end of the world.

JamesBro

Yes, completely understand.
And understand how my spending seems erratic, but I suppose I mean it's manageable that I can live within my arranged overdraft and control my spending to stay within; pay my debts, mortgage and necessities without ever losing control. Sadly I've been overdrawn since graduating 10 years ago and I feel as though this house sale will give me the opportunity, at last, to eradicate it and stay away from it in the future.
As mentioned, my plan is really to clear my overdrafts and essentially half my debt and then I expect to rent (although the stamp duty holiday leaves me frustrated that I'd not be able to take advantage of that). During renting, I'd expect to have one final debt to pay off (the £10,000 remaining, which I pay £266 a month for). And I'd hopefully be able to still get a mortgage 6 months - 12 months after selling. That's my aim and happy to know if I'm being naive.