how best to sort out 4 different debts?

Voight_Kampff

Hi - whoever is inclined to read, here is my profile:

Monthly Incomings:
My salary - £1,352.00
Partners salary - £900.00
Total - £2,252.00

Monthly Outgoings:
Mortgage/Rent/insurance/CT - £655
utilities&media - £100
Food - £300
Gym membership - £60
Total: £1115

Debt
A&L CC – Balance £400.00 (limit £4,400) APR 24.9%, Monthly Payment £100
HSBC CC – Balance £1400 (limit £2,250) APR 24.9%, Monthly Payment £100
Halifax Loan – Balance £4,200 APR 10.1% Length of term 60 months, 36 months to go, Monthly Payment £126
Student Loan – Balance £2000, APR c.2.5%, Monthly Payment £100
Overdraft #1 - £431 (limit £800.00) APR 6.9%
Overdraft #2 - £900 (limit 1100) APR 12%
Total £426
making a grand total £1541.99
I know I need to move away from the exorbitant cc interest, but I wanted some advice on how to deal with the whole lot at once. Should I get a new, lower interest loan?
I'd really appreciate some advice - I end up losing the plot looking at all the options! Thanks for any advice you can give me.
ciao!

lindens

Hello, You may get more advice on the DebtFreeWannabe board, as they are really good at looking at peoples outgoings and giving advice as they have done it all themselves!
Debt consolidation can be a dangerous way to go especially if you are not strong and dont keep spending (like me).
I would go over there and post up a more detailed SOA (statement of affairs as you have done) make sure you incluide verything. This maybe take a day or two i realise but do it asap.

On thing I notice you seem to have about £700 spare every month - I guess you actually dont otherwise you wouldnt be one here? Maybe keep a spending diary for a month or two and see where your money really goes.

Look forawrd to seeing you over on DFW board!

CHR15

My two penneth......

Everyone is going to tell you to bin the Gym!! already £60 a month better off!

Pay the minimum on all the cards except A&L. It will be paid in 4 months anyway,

As soon as that is paid off, put the £100 you have extra towards HSBC cc (along with your £60 cancelled Gym) so you are paying £260 a month off HSBC.

Next one is Overdraft #2 to get rid of, then the Halifax loan (assuming you can pay it off saving interest, if not, then may as well move down the list.

By this time you will have about £450 available to pay off debts.


Once you clear the first one and use the freed up money to pay the next the debts will start zooming down!!

Good luck

lindens

To echo what the poster above said goto
www.whatsthecost.com

which is a snowball calculator and you can play around with those figures. Itas amazing to see how much interest you can save yourself if you do it right.