what do you do first?

edited 30 November -1 at 1:00AM in Debt-Free Wannabe
4 replies 774 views
LMCDLMCD Forumite
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edited 30 November -1 at 1:00AM in Debt-Free Wannabe
hi there.

ok I have a wee spreadsheet on laptop of a plan for being debt free...

my question is what order do you go about it am a bit in limbo...

I have combined me and hubbys debts and all wages in my account to then tackle these ...

three are high interest credit cards - where i can afford to pay 30 each week to pay them off...or do i pay one card off at a time givin one 90 a week til its gone....

or i have a cred union loan where i pay 45 a week towards - do i just go along with the monthly statement for credit cards and hammer this as then that would be an extra 45 a week to then tackle another debt...

am i even making sense?! :o

ok... sense tells me pay off interest highest first but then there is another part tugging at me that 45 free a week is even better to pay off other things?! (total 135 free then) help me boab!

Replies

  • dancingfairydancingfairy Forumite
    9.1K Posts
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    the general consensus seems to be to make minimum payments to everything if you can and then put anything extra you have into the highest interest debt first as you will be saving more in interest doing it that way.
    Other people like to pay the minimums on everything and then tackle the smallest debt first to feel like they are on a roll.
    Whichever way you choose when you have paid off a debt you pay that payment to the next one - the first way may seem slower but works out quicker in the long run - it depends on how you feel really.
    df
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
  • Hi LMCD

    I would use a snowball calculator and input all the scenarios and see what works for you. Some people prefer to pay off the largest debt first, others do it in interest order. Here is the snowball calculator: http://www.whatsthecost.com/snowball.aspx?country=uk

    I am sure some wise long term MSE will be over to give you some better advice but I didn't want to read and run.
    *Official DFW Nerd #1368 - Proud to be dealing with my debts*
    *Debts at LBM (11 Jan 2011): -£16400.62* Currently: -5948.68 (64% paid )*4 CC and 3 OD*
    Current DFD: [STRIKE]Oct 2012[/STRIKE] May 2012
    :eek:
  • LMCDLMCD Forumite
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    Rock_Cakes wrote: »
    Hi LMCD

    I would use a snowball calculator and input all the scenarios and see what works for you. Some people prefer to pay off the largest debt first, others do it in interest order. Here is the snowball calculator: http://www.whatsthecost.com/snowball.aspx?country=uk

    I am sure some wise long term MSE will be over to give you some better advice but I didn't want to read and run.


    I'll check it out thanks alot.
  • CH27CH27 Forumite
    5.5K Posts
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    Personally, I would pay the minimum on everything apart from the card that charges the highest interest. I would throw any spare cash in that direction until it is clear & then move onto the next highest.
    Good luck:)
    Try to be a rainbow in someone's cloud.
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