which do I pay first????

indebtandneedhelp!

I start every year the same saying I will sort out my finances but this year I REALLY mean it, I have been paying off the debt for the past 3 years and have so far managed to clear just under £5000. I currently have the following debts

Sainsbury’s Bank Credit Card £1750 APR 23.9%

Monument CC £432 (defaulted and on payment plan of £8 per month with no interest)

Barclaycard CC £336 (defaulted and on payment plan of £10 per month with no interest)

Halifax Overdraft £1269 (defaulted and sent to EOS debt collectors, on payment plan of £55 per month with no interest)

DFS £1000 (been to court and have CCJ which I pay £7.50 pm for – no interest) being dealt with by

Sainsbury’s bank Loan approx £10,000 (been to court and have CCJ which I pay £150 pm for – no interest) being dealt with by

I get paid 13 times per year so have managed to have approx £800 “spare” this month my question is now what to do with it.

1. Pay off Barclaycard and Monument in full (they will both give me approx £24 discount)
2. Try and barter with Halifax (or EOS) to see if they will accept the £800 as a settlement figure
3. Pay a large chunk off of my Sainsbury’s bank CC

My question is this, obviously to go onto a payment plan I had to submit an I&E (I have been earning overtime for the last few months but have not declared this)) to all companies and agreed to pro rata my money so all debts will be paid off at the same time. A Friend of mine told me that if I pay one off then the others can check and request the full amount outstanding, also I know many of these companies are “linked” so can they find out?? I have also been told that they can request to see my last 3 months bank statements which will also show I have been earning more than I have declared on my I&E. Approx 6 months ago I sold my flat and made a 54K profit, 40K I have put down as a deposit on a house (mortgage is in my partners name) and the other 14K paid off our joint loan, as the mortgage was going in his name only and he is 45 he could only get a 20yr mortgage and we were paying £284 pm for a loan. So my question is what do I do? As I haven’t been totally honest I’m scared this is going to open a whole can of worms!!!


A dream is just a dream. A goal is a dream with a plan and a deadline

thriftymomma

I would try posting this on the Debt Free Wannabe board. They'll be able to help you! :-) Good luck - the first step is coming here and you've done that - onwards and upwards!

PROLIANT

Hey well done on facing your debts head on! :beer:
Alot of people on here could learn from this instead of hiding behind the MSE
Bandwagon and feeble loop holes in law - how lame.
Never the less you are doing the right thing and with £800 notes per month spare you should look for a loan to pay the lot off and just have one monthly payment, there are companies who specialise in lending to folk who have had trouble in the past, if you are a home-owner then you will find it much easier to get a loan for this purpose, if all else fails just divi up the £800 and pay more off the biggest debt then down-size the remainder proportionally.

Good luck and once again well done.

nomoneytoday

I would pay it off the first debt, as the others aren't charging interest, whereas the top one has an APR of 23.9%

sferguson91

It has to be pay off the Sainsbury card, the golden rule is you pay off you highest % debts first and as you are not paying any interest on the rest, it would be silly to bother with them at the moment.

chris_wales

i agree with above, sainsburys debt will keep going up while they charge interest so reduce this first, others wont go up at all