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Debt Prioritisation
Looking for advice/recommendations on managing my debts. In December a sizeable part of my mortgage will have been paid off meaning I will be “better off” by around £500 a month. I have significant credit card and personal loan balances plus a large overdraft. What should I prioritise in repaying off first? The credit cards, the personal loans or the overdraft?
Comments
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Which ever has the highest interest rate.
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Overdraft first. Not only is it likely to be costing you the most but it is also the most risky in that it can be withdrawn at any time with little notice. After that follow @Keep_pedalling 's advice and work on the debt with the highest rate of interest first.
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Another for the overdraft, likely costing near 40%, maybe double your cards.
Once that's gone, I'd consider slightly increasing payments to all the high value cards, perhaps rounding to the next fiver and tenner. Algorithms seem to like decreasing debt and may reward you with 0% switches.
Unless you got other very high rate cards, which would be priority.
If you've have not made a mistake, you've made nothing1
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