Opinions Please....extra income

[KirstyO]

Right, I've just finished paying off a small overdraft at £25 a month, and have managed to live without this very reasonably, so I'm thinking what would be most useful to do with this £25 a month now. I could:

a) put it into my e-isa which has a very attractive interest rate, until such time as I have enough to offer f+f to my 4 outstanding creditors

b) add it to my dmp payments (reducing dfd from 6 years to less than 4)


c) manually snowball my debts in addition to my dmp (eg. i have a £130 argos card thats only getting £5 a month from DMP, but with cash injection each month could be gone in 5 months, then add it onto the highest priority debt after this)

Your opinions would be most grateful. I know there is justification for all three options, but I'd like the one that will make my debt shrink the fastest!!!

[Want-To-Fit-In]

Do you have an emergency fund?

If no I'd probably put it towards this.

[Time to face the music]

Originally Posted by KirstyO

Right, I've just finished paying off a small overdraft at £25 a month, and have managed to live without this very reasonably, so I'm thinking what would be most useful to do with this £25 a month now. I could:

a) put it into my e-isa which has a very attractive interest rate, until such time as I have enough to offer f+f to my 4 outstanding creditors

b) add it to my dmp payments (reducing dfd from 6 years to less than 4)


c) manually snowball my debts in addition to my dmp (eg. i have a £130 argos card thats only getting £5 a month from DMP, but with cash injection each month could be gone in 5 months, then add it onto the highest priority debt after this)

Your opinions would be most grateful. I know there is justification for all three options, but I'd like the one that will make my debt shrink the fastest!!!

Are any of your debts charging interest?

[KirstyO]

my debts are minimal interest because ive had successful negotiations through my DMP. Both CCs are frozen, the store card is minimal (but the highest interest of all my debts and the small which is why i want it gone. Its the most achieveable and of the £5 that goes every month, only about £3.95 of debt is reduced) and the overdraft is also frozen.

[beanielou]

Add it to DMP.
My understanding is that you cant favour one creditor while on a DMP.

[katy_ann]

I would add it to my DMP

[moongarden]

I'd save around £200 somewhere as an emergency fund and then manually snowball by saving the full amount for the debt with the highest interest then ring them and ask for a settlement figure.

read the small print on the DMP first though. You could always say the additional cash was a gift from a family member?