what to pay off with the 4k cheque

loopymadlover

hi we traded our car in recently and got a much cheaper run around we also got a cheque for 4 k back from the dealer

our debts are as follows

ring 75pcm 11 months left 1500 0% apr
loan 152 pcm 36 months left would reduce the term to 12 months 8% apr
bike 40 pcm 36 months left 2k 19%apr
egg c/card 110 pcm 4k balence left would pay off in full 20% apr
council tax 1000 would pay in full so no dd for the rest of the year
sofas 3200 would pay in full not started paying yet will be 95 pcm start in aug
there are 2 more cards and the 0% is just about to run out this month oh what to do any advice greatly appreciated thanks

DarkConvict

What you pay per month doesnt matter, you should pay off what is charging you the most interest per month.

By what you have posted, the Egg account has the highest APR so pay that off, this way you are losing less money in interest per month.

miss_missy

hi
i agree with dark id pay off the egg unless any of the ct is arrears and then i would pay off the arrears first and then put rest to egg

niccatw

I agree with DarkConvict, though double check what the APRs will be on the ccs that are about to finish their 0% offers. If they'll be higher than Egg, then go for them first.

I am assuming council tax is up-to-date. If not, then pay council tax before anything else.

The snowball claculator might help you play about with your options; http://www.whatsthecost.com/snowball.aspx, bt essentially you always want to throw spare cash at the debt with the highest interest rate as it is the one that is costing you the most.

Tixy

Is your CT for the current year (to March 10) or next years to March 11? If next years then I would also go for egg card as its the highest APR and will allow you to free up that £110 per month to put to your other debts.

But you may want to check whether the APRs on your other cards will be more or less than the egg 20%

loopymadlover

council tax up to date would be for 2010-2011 thanks for the advice tho

fatbelly

But check the deal on the sofa. It's likely to be something like:

should you choose not to pay the balance after the first 12 months, interest bearing credit will follow your 12 month payment holiday at 29.8 APR typical

So you need a strategy to be able to pay it off in full in August.

P.S. What does your signature mean?

loopymadlover

i went bankrupt last may .

DarkConvict

i went bankrupt last may .

Thats confusing.

If you went bankrupt in may last year (2009), i assume you are not discharged till may this year (2010)

If thats the case, how did you acquire credit of over £10,000? You have to inform them you are BR if you apply for credit over £250.

If you went BR in May 2009, and these debts are from before then and included in the BR, then you should not be making payments towards them. Instead you should pay your official receiver an amount every month IPA/IPO (50-70% surplus cash) for 3 years from BR date.
Furthermore, if you are still an undischarged bankrupt, then you must tell your official receiver about the £10,000.

JasX

and if they were allowed to keep the car would OP have not been better to wait till after BR discharged before trading it down?

zarazara

I think paying off the egg card, then cut up the card.