10k in current-account, 18k of depts

richard101

Hi All

Expert dept-managment advise please.

Sold my car yesterday, 10k in current-account, 18k of depts in 3 places.

1) zopa, 9237 owing (originally 12k for 60mnths) 9.5%apr, paying 249pm
original car-loan

2) santandair-CC, 4997 owing, 0%apr til feb2011, paying 130pm
moved from HalifaxCC july2010

3) virgin-CC, 3757 owing, 0%apr til apr2011, paying 37pm
just moved from Barclays (where overran interest-free-period, ouch)
1st payment end of may.

At first glance I guess I should pay off Zopa (as its 9.5%apr), I seem to recall there docs says about freedom to pay as much as I like.

BTW: There seems to be a bit of a difference between my monthly payments to Santandair (130) and Virgin (37). I know (as its new) the Virgin is 'minimum repayments'. Should I increase my Virgin payments? (assuming I pay-off Zopa and have a 'free' 249pm). Or should I minimise Santandair (maximising my disposable-income, I'm paying 400pm towards (gf's) house-bills, should really be 700 ie: 50%).

Or should I pay off the 2 CC's? (Credit Cards). Combined there as much as Zopa, and I tend to overshoot the 0% period. Did Zopa take all their interest at the begining -say- ?

thanks

richard

gonzo127

have you defaulted on any of the debt? if so you can sometimes get a much reduced full and final settlement. depending on how far the debt has gone into default and debt collection you would be amazed at the settlement figures some people have got

if not you still should be able to get a full and final settlement however it is likely to be a higher % than if you had defaulted, it is not unknown for companies to accept a 95% full and final settlement on a non defaulted account.

now since you have got your credit cards on 0% i would agree that the zopa loan should be the one you do first,

i would start by sending a written full and final offer (recorded delivery) of roughly 80% of the balance (£7400) ok i would not be supprised if they rejected this if you havent defaulted however if they as a company need to get a bit of cash flow they might accept it however if they dont you can make a revised offer of 85% (£7850)

just remember to put in your letter that you have been offered the money by a family member and that if they do not accept within 14 days you will be withdrawing the offer and offering the money to your other creditors

MrsTinks

If you haven't defaulted then why screw your credit rating? F&Fs are suitable for defaulted debts and shot credit ratings... as the OP has gotten 0% cards then I think their file is probably looking pretty good...

OP - Contact Zopa for the final settlement figure - it may be that your loan has had the apr added up front, but not all of them do - checking with them should clarify. Then again if your loan is for more than you took out then I guess it was added at the front but you should get some of it back/knocked off the loan

I would then hurl as much as you can towards your cards from the payments you're saving

DebtFree2011_2

I'd find out if you can pay off the Zopa loan; if you're paying it back early, you should save on some interest, and so you'll probably pay back less than the £9237 you have stated. I'd call them to get a figure of how much it would cost you to pay it off now, and do it.. Anything you have spare after that I'd pay towards one of your cards; probably the Santander as the 0% ends soonest.. That would leave you with about £4100 on the Santander card...

You should probably post and SOA so people can see if you have any more money to throw at the cards; Feb 2011 will be here quicker than you can imagine and it'd be good to have that card paid off before that date... Using the spare £249 you'll have, you'll have paid (£249*9 = £2241) + the amount you're already paying (£130*9 = £1170) which adds up to £3411. Take that off the £4100 and that leaves you with £700 which will start to gain interest...

You'll still owe quite a lot on the Virgin card at that point, so you'll have to be looking at 0% balance transfers if your credit is good enough to do so...

Anyway, post your SOA and other people will soon be here to help out..

Happytogetdebtfree

I would advise paying the zopa off its the one with intrest and the payment could make a difference to the credit cards so a win win x