Advice needed on Prioritising debt

snowmaker

Hi,
Got a few debts that I am determined to get rid of within the next 2 years

Here's a brief state of affairs:
outstanding loan repayment £240 per month for next 3 years

credit card repayment £150 per month (just moved balance to Virgin card 0% for 15 months) £3940 owing on just 1 card.

£2750 overdrawn with bank,

Homeowner, £1200 savings,

What I need help with is, do you think I should try & pay off the overdraft or the credit card as a priority. I pay £20 a month into my savings account but am loathed to use this to pay off debts as it has been building steadily since I was left £500 by my Grandad a few years ago., and I see it as a kind of emergency fund.

Anyone got any advice please?
Steve

SuzySu

Hi

Try the snowball calculator at www.whatsthecost.com You enter all your debts, the APRs (so go and find your paperwork!) and the amount you can afford (or want) to go towards each debt. You can then play around with the amounts - some want to get rid of small debts first so that they feel better having less creditors; some prefer to pay off the creditors with the highest APR which usually costs you less overall.

Have a go - it's really quite fun and very enlightening!