I am starting at the right place!

LouiseW_3

hi,
After sitting down with my partner to sort out both of our debt i just want to get any advice on the best way to pay it off. In total we have
Me
975 and 350 on overdrafts with HSBC and ABBEY, these are both 0% with 1000 limits reducing to 500 next AUG.
6155 car loan to parents so 0%
6200ish student loan taking 30 per mth from wages each month.

Partner
675 Tesco cc ?% (but high)
1600 Barclaycard 0% til feb 05
3800 Capital One not sure of% but thinks 5.5% for life of balance.

now am i right in thinking we would be best to use my

0% overdraft from Abbey to clear the Tesco card.

then clear Barclaycard before 0% ends in feb.

then reduce my overdrafts to within 500 limit each (prob could do this by June at latest)

then concentrate on capital one cc


In Oct next year i will qualify at work and should get a pay rise of around 6000-7000, which will make things a lot easier.

my loan to my parents is a set amount of 128 p/mth for the next 4 yrs and i don't think student loan is a priority as they are taking what is owed directly from wages.

Robert_Sterling_3

A very sensible approach.

vansboy

Sounds like you've got the right idea.Clear that Tesco account.

But I'd think about finding another 0% balance transfer, to clear Capital card, providing the rate remains low, long enough, for you to clear it.

Also, as you've several accounts, could you try & get shot of at least one of the overdrafts?? Even if it's free, it'd be another thing out of the way.

Would you be able to manage without a card, using cash, as living X's? I'm just thinking, thats maybe what the Tesco card was for.

VB

Nickynoo1

Hi Louise w,

Have you thought about how and why you accumalated these debts. student loan understandable but what about the rest. Have you been living above your means?

You need to think about this so that when you are debt free it will be for the rest of your life.

Take it from someone who has has had credit for........ well seems forever. I did pay it all off once using some equity when I moved house but as time went by i managed to find myself in another 8.5k of debt.

I obviously didn't learn to live within my means at that time or understand my personal finances very well. In fact I don't think I even thought about it.

Thankfully I've seen the light and budget to live within my means and pay off the dreaded debt.

Seriously though you do need to think about what got you into debt in the first place so you change your habits now. Sorry to go on, ignore me if you want, just passing on personal experience.

Good luck with everything.

Nickynoo1