pay off unsatisfied defaults/ccj's or concentrate on clearing loans etc first?

welly_59

I've around 200pound a month spare which i can use to get my debts down. Would you reccomend paying extra off my loans/credit cards to clear them or should i use my spare money to pay off a default and ccj which i have on my file?

the default is for 500, and i have 1500 to pay on my ccj. The interest rate on my loan is 48% and i have 1000 left to pay on it.

Moneywise i know i would be save by paying off my loan early and saving on interest payments, but would paying off my ccj's and defaults improve my credit rating and then let me concentrate on my loan at a later date?

Airwolf1

Concentrate on what is costing you is my opinion. Can you not write to the loan company asking for a reduction, or to freeze interest due to hardship? Don't forget, ccjs etc stay on your credit file for 6 years (iirc) so I'd look at now and try to save some money by clearing of the loan. Also, can you write to the credit card companies, or even contact the CCCS and ask their advice?

welly_59

credit cards aint a big problem, its only a very small amount and i could clear it straight away. i think i'm going to use the extra cash to make early payments off my loand and get it cleared by march time saving myself a few hundred in interest

CLAPTON

all things being equal then pay off whatever debt is costing you the most interest (i.e. with the highest APR)