which do I pay first???

indebtandneedhelp!

which do I pay first????
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 as it's my "free bill 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!!! Someone has suggested getting a loan but that is not an aption as even the worst offenders will not touch me, and as I have put the money and morgage in my partners name I am no longer officially a "home owner"


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

GeorgeUK

If you haven't already done so, it may help to do a statement of affairs. There is a SOA calculator available so that you can see exactly what is coming in and going out.
http://www.makesenseofcards.com/soacalc.html

You are paying interest on only one debt so technically it is better to pay the highest interest off first. As you have debts with DCA's however, you may be able to offer reduced settlements on what is owed.

I would offer 40% to each
Monument - 170
Barclaycard - 130
Halifax - 500

Make sure you state in any letter that it is a "full and final" settlement offer. Partial offers are of no interest to you. You may be able to offer them less to start off with - debts with a DCA can settle for roughly 25%-50% and if the debt is still with the original creditor 50%-75%.

There is a letter available on the nationaldebtline site for making offers. Also inform them that the offer is only available for a limited time.

stapeley

I would would keep £250 in back pocket and put rest to the 23.9% cc . You need to get rid of that as soon as possible.

lxpeanut

I think you should try Georges aproach too. Try and pay off as many debts as possible with your spare cash. Then put the money you have been paying towards those debts towards paying off you sainsburys card quicker.