£4,000.00 windfall. Which debt to pay first?

fatbelly

dealwithdebtdot wrote: »

Have you got more that have no interest being charged?

Signature shows total debt 40 -44k so presumably yes.

So that infers defaulted debt. Which would probably be open to F&F. If this is not heading for insolvency, that might be the most effective use of 4k, possibly writing off 12-16k.

But this is all speculation without knowing the full situation.

dreamdreamer

All the above i have so far managed to keep up to date with at the expense of other bills going unpaid.

Alarm bells... what bills are going unpaid? Credit cards/Loans (so long as they are unsecured) should always come second to priority debts. Priority debt is things like mortgages/rent, tax & NI, council tax, utilities. Things where serious action can be taken against you if you don't pay what you owe. Here is a good guide.

Provided you are paying these then I would put the £4k towards the 29.9% CC as it's costing you £262 a month in interest alone compared to £53 for the loan.

samuel.s

I am in the process of doing my SOA. As I am putting things down on paper it's already getting quite scary.
There are important bills that are going unpaid at the moment ie service charges where I live. Current debt about 1800. Services charges on two rental properties I own which are about 2400. Also social security payments of about 5000 and probally some tax. (the latter two are not UK based taxes)
I also have an arrangement with metropolitan collection for £150 per month which has no interest being added. That debt started of around 9k and now stands at about 4.5k
Mortgages are up to date and so is my rent.