Which debt do i tackle first?

[Chosenone]

For various reasons we have a lot of debt and we are now in a much better position to pay it off quicker. Which debt do we tackle first? I always hear it's the most expensive debt first ? We have;
Credit card at 9000 this is 0%
Credit card at 4500
Credit card at 1800
Over draft at 3500 (this now has high fees and costs a lot! )
Next Directory 1400

We now have approx £800 a month to really get to grips with this. We're thinking overdraft first, middle size credit card, then little, then Next and the 0% one last and try and transfer when deal ends.

General advice is to pay off the highest interest one first. Here's Martin Lewis' advice www.moneysavingexpert.com/loans/debt-help-plan/ too

Look up the concept of snowballing.

But also balance it with the psychological boost of paying off a card to keep you motivated.

(When you do, please remember to call the card co and properly close the account, don't just cut it up as the account will stay active!)

Would it be worth having a meeting with your bank? I've previously amalgamated my debts into a much lower interest loan from the bank over a longer period.
Can't do any harm to have a chat with them.
Regarding interest percentages, have you shopped around for 0% offers on new cards balance transfers?

I would start with the ones which you are paying most in interest for so your overdraft first then the next highest interest etc

I followed the Dave Ramsey method for a similar sized debt - go for the lowest amount first, pay that off ASAP and then target the next lowest and so on. It’s not mathematically the ‘best’ way to do it but it is supposed to be better for keeping motivated.

www.daveramsey.com/blog/get-out-of-debt-with-the-debt-snowball-plan

I can only swap to another 0% for 9 months as I have all this unsecured debt. My bank offered me a loan, but due to me having a lot of debt the best interest rate was 12% which seemed ridiculously high.

And the Baby Steps which he references in that article.

www.daveramsey.com/baby-steps/

Can you transfer the overdraft to a credit card by getting a cheap money transfer card? Look on moneysavingexpert.

My suggestion based on repayments of 800 per month:

1. Next Direct 1400 - 2 months to clear so good motivator
2. Overdraft (high interest) - 4.5 months to clear
3. CC 1800 - 2.5 months to clear

At 9 month consolidate remaining CCs onto another 0% or low interest CC
I haven't factored in interest charges so could take longer

Anyone giving @Chosenone advice on this thread without knowing what interest rates are being charged on each debt is really not doing anyone any favours.

How does the 12% on the bank loan compare to the rates being paid ?

This is the basic information required for a decision.

docs.google.com/spreadsheets/d/13sP6D7BfKHaNGaEF2s9jArK6ZPwJd8NZj3eor4tzzB8/htmlview#gid=0

Try this, it's brilliant.

If it were me personally then i’d tackle the overdraft first as it’s costing you a lot in fees. And it then gives you emergency money again if you ever desperately need it down the line.

I’d then go for the credit cards in order of how high the interest is. It will help your credit rating sorting these out.

And then i’d finish off with Next

Ok. Looking at the interest now to work out which is most expensive. The overdraft is tricky as it starts off cheap and the daily rate increases as we go more into it as the month progresses.

Sounds like dealing with the overdraft will make some sense Re interest rates, but also be a good motivator as you will reap the benefit of avoiding fees right away?
With the cards- while you chip away you can do TalkinPeace's standing order trick (set standing orders rather than direct debits for your current minimum payment amounts or a little more, it keeps you progressing a tiny bit rather than treading water with those ones...)

Right. Thank you. I never quite understood the standing order thing but yes I can up the payment from the minimum.

My CC companies have allowed me to set the direct debit for a fixed amount so I am paying a little extra each month and the debt is slowly decreasing.

Sandstone. With the cc company allowing you to pay a little more than your minimum you'll be paying it off for years...don't allow the ccco to call the shots....add some more by standing order or you'll be tied in for years