how to become debt free

ihatemyhouse · 7 December 2013 at 8:23PM

am moving house in dec/jan to a smaller house, should be at least 400 a month better off

what is the best way to be debt free and the first thinks I should be doing

do I go after the credit cards, or ask to stop them and freeze them and set up a payment plan (not that bothered about using them)

the debts I have are

OD 500
Vanquis CC 1800
Capital One CC 1500
Barclays CC 1000
Holiday 2400

this year has been a disaster finance wise, moved hosue, that cost us a fortune to run and never really recovered from it, so that's why we are moving

any ideas

MrsGSR · 7 December 2013 at 8:27PM

First you need to do an SOA so they people can advise better. You need to see where your money is going before you can work out how to pay things off.

ihatemyhouse · 7 December 2013 at 8:30PM

been looking for the budget thing on here, but cant seem to find it

MrsGSR · 7 December 2013 at 8:58PM

http://www.stoozing.com/calculator/soa.php

dancingfairy · 8 December 2013 at 10:23AM

If you have been making the minimums up until now then you won't have any defaults. If you have already missed payments or had any defaults then your credit file will be affected.
Obviously paying them off and not asking for a payment arrangement would be better if you haven't already damaged your credit file.
It depends on what you can now afford as well. Generally it's best to pay the minimums and then any spare to pay off the highest interest debt first.
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how to become debt free

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