Reduce cards or Loan

pachalad

Hello, looking for some advice. I have about 6k on credit cards and a 10k loan from the credit union. In terms of applying for a mortgage, what would be best to reduce first?

I can put an extra £500 a month into 

i: the loan

ii: the individual cards

iii: or split the 500 over all of my debt?

Any thoughts on what to do? My plan was to focus on the loan which is about 500a month by itself and then focus on the cards!

What do you think?

y3sitsm3

It doesn't matter as far as a mortgage goes.

Pay off the highest interest rate debt first.

EssexHebridean

What is the interest rate on the loan and on each of the cards? 

Mortgage companies won't be interested in the specifics once you get to cards -v- loan. If you had overdrafts as well that would red flag, similarly if your loan was a payday one you would find some providers simply didn't want to know about lending to you.

Have you addressed the issues that have lead to you running up the debts? If not I'd suggest you do so before taking out a mortgage.

pachalad

Yes, I have addressed the issues that were leading up to being in debt, the death of my father being the main one. Perhaps try not to be so condescending when offering advice. 

MalMonroe

Hello, I am sorry for your loss.

I agree that the best thing to do is to pay off whatever has the highest interest rate first. 

As far as I'm aware, credit unions charge lower interest than any other lenders, so it would seem more sensible to focus on the credit cards and then the loan. 

pachalad

Hi Mal, appreciate that, thank you . I've just spoken to my CCs and they have a higher int rate! I have some spare cash, so based on yours and the advice from everyone else, I've paid off half of the cc debt. Thanks again