Best Method For Clearing Debt ASAP

MIJ1986

I currently have 6 credit cards and 1 loan (ends Apr-21).
These all total £25k.

I have roughly £1,400 per month to repay towards these after taking out other bills and expenses.

What is the best method to clearing these as soon as possible and how long do you think it would take?

Any help much appreciated

Karonher

Some people will say get rid of smaller ones first, others will say concentrate on the ones with the highest interest. There is not enough information to give a proper answer.

bamgbost

As the previous responder said, there are various theories. E.g. Start with highest interest or the small debt, etc. But if you  can provide a list of the debts , the % interest and the amounts owed. ( and list when any 0% offers come to an end too!), then we can tailor a response to your situation.

Im in a similar predicament, so i feel you. Dont worry, you are not alone.

lopsyfa

Mathematically, to pay the lowest interest, you should pay the debt with the highest interest first. Psychologically, it may be better to pay the smaller debts first as it gives some satisfaction to see the number of debts reducing.

I will go with an hybrid approach of after paying all minimum payments, allocating payments to the one with the highest interest. If two or more debts have similar interest rates (+/- 1%), I will pay the smaller amount. You should also keep an eye on when promotional period ends. If a debt promotional period ends in 3 months time, it may be better to start paying it down now except if you can pay the balance from savings once the promo period ends.

Buffythedebtslayer

Just going on what you have said it will take a minimum of two years. I did whatever worked when I had that level of debt. I paid off about 600 a month and it took from 2007 (when I joined here!) to 2011. 
I made games with myself (!) I would try and get all my loans and CC bills to be equal numbers so I paid little extras to bring the CC to 550 instead of 556. 83 for example. I made use of 0% deals which were around a lot back then.  Some months I would focus on small debts and others big debts, I did at one point consolidate to one loan cos I was trying to get a mortgage and I could easily over pay the loan quickly and it just made things easier for me to manage. It was not straightforward and I was not always motivated. I also tried to have savings of 500 pounds (not always successfully) in case of emergencies. 
I think the difference for you is if you really do have 1400 pounds then perhaps you could suck it up for two years and be done with it. Challenge yourself to do it as fast as possible. My biggest piece of adivce to keep yourself interested in it, when I did it I fell in with a good group of people who helped me enormously, all on here and some became real life friends. They got me the through the worst of no fun Buffy times!