what debt to pay?

olivia84

hi there,

for some strange reason my boss has decided to give us £1000 bonus this month! :j (must need to 'get rid' of some money!) i am wondering what debts (and there are many!) i should put it towards??

my monthly salary is normally £905.00.

most of our debts have the interest frozen, except our £4500 overdraft; however i have a few payday loans which i have defaulted on in the hope they get passed to a DCA and i can arrange a repayment plan (these are only 2 months old so not passed on yet)

RBS
£600
£7020.00
YES

ABBEY NATIONAL (NOW WITH DCA)
£100
£6000.00
YES

MBNA (NOW WITH DCA)
£20
£1800.00
YES

MBNA (NOW WITH DCA)
£5
£1400.00
YES

EGG (NOW WITH DCA)
£5
£1200.00
YES

TOPSHOP (NOW WITH DCA)
£5
£100.00
YES

NEW LOOK
£5
£120.00
NO

CAPITAL ONE
£27
£500.00
NO

VANQUIS
£40
£1000.00
NO

OVERDRAFT
£61
£4500.00
NO

WONGA
£800

PAYDAY EXPRESS
£400

PAYDAY UK
£380

QUICK QUID
£380

anyone any advice?? obviously i should put it towards something that is costing us every month so the obvious ones should be the capital one or vanquis credit cards, however, to my shame i was planning on defaulting on these as well in the hope that they'll almost certainly be passed to a DCA and the interest frozen eventually. i am planning to do the same with the paydays (i know, its terrible) maybe pay the capital one and clear it of the £500 and pay the piddly little top shop and new look??

never thought i'd have a problem getting rid of money!

sorry - the table i made isn't copying well! - the payments go in the order of:

creditor
monthly payment
balance
interest frozen?

olivia84

anyone?? x

Tixy

Tricky really because of the strategy you are adopting with your debts. Would it not have been easier to put all your debts into a managed DMP?

Anyway - I would either go for the some of the payday loans (as whilst they may eventually freeze interest the charges they add on in the meantime will likely be very costly). Or clear £1k off your overdraft and reduce the limit down by the same amount (is that the only debt you are not intending to default on, so won't expect interest to be stopped at any point?).

Another possible option is to use it to offer reduced F&Fs on 1 or 2 of the debts with DCAs.

PPink

Like Tixy said if you use the £1000 for you pay day loans with
PAYDAY EXPRESS
£400

PAYDAY UK
£380

QUICK QUID
£220

This =1000 and youve got rid of 2 debts in full :Tand the majority of a 3rd. If you had any extra you could get rid of 3!

This will end up saving you a lot of money as the interest on the pay day loans is crazy

PPxx

DS4215

You could try making an offer (50% maybe) to the Pay Day Loan people. Tell them a third party is offering to help you out and make sure the money doesn't go into an account they know about. You might drop lucky. Try the same with the Top Shop, New Look and Capital One debts. If they are helpful you might be able to get rid of more of the debts that way...

DorsetGirl_2

I would go with the Payday Loans - they are going to be costing you the most.

joedenise

Definitely get rid of the Payday loans - and don't use them again - there interest rates are horrendous.

Denise

olivia84

thanks everyone - i think the payday loans are the most sensible choice - apart from their interest and charges being alot they are also the most active when it comes to calling and calling and calling!

x