what order should i pay my debts in?

littlepinkstars44

Ok i need some help in what order should i make overpayments to first to get them gone, then what one next etc.


New Look Card: £51.29 28.9%
Kays: £213.00 0% (agreed reduced payment plan of £24 a month)
Additions: £170.85 39.7%
Arcadia Staff Card: £230.91 29.9%
Dorothy Perkins Card: £207.00 29.9%
BOS Overdraft: £1100 0% (have agreement to pay £100 a month to it)

Then once they are paid i will concentrate on my current overdraft
RBS: £1400

pania

i'd say additions first hon as it is the highest interest followed by arcadia/dot perks and work down from there.
Or is there any opportunity for you to get a balance transfer card tog et shot of all that shocking interest?

(runs off quickly as i'm supposed to be out running!!)

MrsPitcher2b

Hello Littlepinkstars 44

I would defo pay off additions first, their interest rate is the biggets - then focus on arcadia and dorothy perkins - the next largest interest.

Theres no point in making overpayments on the 0% ones just yet as you arent being charged for the credit, whereas the others you are so its best to clear them first so that you pay less interest!

Maybe speak with additions see if they can offer a lower rate too?

littlepinkstars44

pania wrote: »

i'd say additions first hon as it is the highest interest followed by arcadia/dot perks and work down from there.
Or is there any opportunity for you to get a balance transfer card tog et shot of all that shocking interest?

(runs off quickly as i'm supposed to be out running!!)

thanks, i can't my credit rating is shockingly bad! And i'm only 21!

littlepinkstars44

MrsPitcher2b wrote: »

Hello Littlepinkstars 44

I would defo pay off additions first, their interest rate is the biggets - then focus on arcadia and dorothy perkins - the next largest interest.

Theres no point in making overpayments on the 0% ones just yet as you arent being charged for the credit, whereas the others you are so its best to clear them first so that you pay less interest!

Maybe speak with additions see if they can offer a lower rate too?

Yeah i can only afford to make over payment on one, maybe two at a time.

Numpty_Monkey

Don't know if you've used the snowball calc?
http://www.whatsthecost.com/snowball.aspx?country=uk

But it will probably come out with the same answers you have been given:T

littlepinkstars44

I done the snowball thing and this is what it's given me:

December 2008£642.14£170.85£46.00£207.00£20.00£51.29£10.00£213.00£24.00£542.14£9.97January 2009£552.11£129.06£46.00£191.75£20.00£42.30£10.00£189.00£24.00£452.11£7.95February 2009£460.07£85.86£46.00£176.11£20.00£33.10£10.00£165.00£24.00£360.07£5.31March 2009£365.37£41.07£41.07£159.69£24.93£23.61£10.00£141.00£24.00£265.37£3.76April 2009£269.13£138.19£66.00£13.94£10.00£117.00£24.00£169.13£1.87May 2009£171.00£73.96£71.96£4.04£4.04£93.00£24.00£71.00£0.05June 2009£71.05£2.05£2.05£69.00£69.00£0.00£0.00

littlepinkstars44

oops i don't know how to change it

littlepinkstars44

loaner wrote: »

what's the limit and rate on the overdraft(s)

[STRIKE]don't know what you mean by rate[/STRIKE] - but my rbs account that i use just now is at £1400

ahh i get you, urm nothing it's a student account

littlepinkstars44

loaner wrote: »

so you are at the limit?

well yeah, i have £50 in it at the moment, but thats to see me through till i get paid again on the 5th

littlepinkstars44

loaner wrote: »

ok, limit -1400, currently -1350, so no scope in using the OD to pay off debts. Can you manage on £25/week?

As has been said already, highest apr first, min payments on the rest is the most sensible of paying of any debt.

But, if you are still in the tempted to buy clothes/makeup/pressies on the cards stage, then it could be better to chip away at them one by one, and close the account when they are cleared (there isn't a massive amount of difference between £170@ 39.7 and 29.9)

i haven't used any of them to buy anything in about 6 months!
i can't really afford to make overpayments to more than one account at a time.
No £25 isn't enough, as i need £11.50 just for travel a week, plus lunch in college, dinner at work etc