How should I clear debt

[Clearingdebtadvice]

I have a significant amount of debt - an overdraft, a credit card, car finance, 2 House loans and mortgage. I want to start clearing some of these balances down and think I should start with car finance and credit card. For car finance, I pay 400pm and this is due to end next year. Minimum cc repayment is 116, I owe over 4k overall. Does it make sense to concentrate first on the car finance, then turn to the CC? Both are high interest rates. I will get a bonus of 2000 in the coming months that I can also put to something. Any advice is really welcome.

I would start with the credit card and then the car loan. Just out interest why have you got two house loans on top of a mortgage?

Can’t you transfer anything onto a 0% interest credit card? It’ll save you loads in interest.

@pilates one is for house renovation and the second for garden renovation. Pay extra off the credit card each month and put the 2000 there aswell?
@DetectiveSleuth I'm going to look into transferring to a 0% interest cc today.

Look up Dave Ramsey and the Baby Steps. It’s not perfect but it’s a pretty good strategy for getting rid of debt. Look at the debt snowball. I also found him quite convincing in terms of helping to change my outlook and I like his straight talking podcasts. I’ve paid off loads of mine (£15k down to £3k in 8 months) got a handle on my finances and started to save.

I would see if you can get the cc onto an interest free and then start hammering your most expensive debt. Once paid off, you then roll the same amount onto the next most expensive debt etc until it’s gone. You live pretty frugally until it’s gone.

you might want a good budget to which covers everything with a very small discretionary spending budget. Then you basically live like that until the debt is gone.

What are interest rates for each debt? Tackle the highest one first.

A lot of people seem to miss this, but unless you're on special introductory offer, overdraft is one of the most expensive debts. Don't ignore that one.

See if there's any way of moving higher interest debts to lower ones, ie 0% credit card.

Have a look on youtube at Dave Ramsey baby steps, Its American so you have to adapt a little but that, and by getting obsessed listening to his phone in radio show, via the Ramsey Show app, I'm out of debt and have savings...for the first time, aged 56!

Moneysavingexpert Debt Free Wannabe forum is excellent for practical help.

Thanks everyone. Embarrassingly I don't have a statement for the car finance, and can't find my agreement docs, but I est it must be over 10% APR, which I was shocked to learn. I have been a very big fool. I applied for a 0% card transfer and it was declined.

My plan now is to stick to a budget I have made up, double my credit card repayments and pay the 2000 extra off the credit card when it comes through. When the car loan is up next Feb, I can put that 400 per month against the credit card too.

My budget includes putting aside money each month for upcoming DCs birthdays, school uniforms and Christmas, so it should be manageable.

I'll check out all the people and pages that pp have mentioned, thank you.