Best way to pay off multiple debts?

helen1980call

I have various debts, I am just in the process of working out who I owe and how much.

Would it be better to pay every creditor the same amount or would it be better to pay off the smaller debts at a higher rate and clear them quicker?

I am on a low income and don't want to go for an IVA/bankruptcy etc as I hope to buy a house in the future (10 years or more probably).

Thanks for any suggestions or advice you can give.

gizmo111

Can you afford the minimum payments on them?

helen1980call

They are all old debts (that I stupidly ignored) with no current payment plans set up.

I am writing a generic letter to all creditors to arrange payment.

gizmo111

In which case pay them po rata the amount you have available to pay them all and the amount owed.
Alternatively have you considered savng up and offering full and finals at a lesser amount?

helen1980call

I have thought about that, but I'm no good with money, something would come up with the car or kids and if the cash is sat there it will get used. I'd rather pay them in full and know it's dealt with and as long as I keep up payments I won't have to avoid the postman!