Seeking advise

raindrops_2

Hi i'm just wondering if anyone could offer me some advise on my debts.

I'm wondering what is the best debt to pay of first. Here is a list of my current balance of my debts:

Vanquis £1162.28 at 39.90%
HSBC £3865 which was sold to a debt collector so there's no interests
Very £850.64 at 44.90%
Capital One £194.72 at 34.08%

I pay Vanquis the most each month as the interests on that account is really high compared to Very which has a higher APR. I'm now wondering if i should clear Capital One as that is the lowest but if i pay minimum for Vanquis next month then the interest will eat up on the minimum payment and it will look like i've only made a small payment overall for the month.

Thanks for reading my post.

awayinchina

The rule of thumb is pay the highest interest first:
However, if you clear cap1 then you have more to give to the others. If the HSBC is sold on you might want to enquire reduced payment to clear the debt (you might be able to pay as little as 25% of the balance to clear it)
HSBC debt pay minimum between £1 - £10 pcm and once all other debts are cleared enquire about full and final settlement.
My attack when I was clearing my debts was make monthly minimum + £5 on lowest interest rate and all out attack on the highest interest.
IE.
Cap1= minimum monthly + £5
vanquis= minimum + £10
very= minimum + £ what ever I could afford (I would adjust cap1 and vanquis so I payed the highest interest off first)

Tixy

Have you worked out what the maximum you can afford to pay to your debts each month is?

Once you have then put all the figures into the snowball calculator - http://www.whatsthecost.com/snowball.aspx

It will show you the best way to clear your debts so you pay the least in interest overall. It will show you to pay off the highest APR first (so Very) and show you how much you will save by paying it off in the way it recommends.

edgex

raindrops wrote: »

Hi i'm just wondering if anyone could offer me some advise on my debts.

I'm wondering what is the best debt to pay of first. Here is a list of my current balance of my debts:

Vanquis £1162.28 at 39.90%
HSBC £3865 which was sold to a debt collector so there's no interests
Very £850.64 at 44.90%
Capital One £194.72 at 34.08%

I pay Vanquis the most each month as the interests on that account is really high compared to Very which has a higher APR. I'm now wondering if i should clear Capital One as that is the lowest but if i pay minimum for Vanquis next month then the interest will eat up on the minimum payment and it will look like i've only made a small payment overall for the month.

Thanks for reading my post.

if you pay an extra £20 per month against the Capital One for the next 6 months (£120), you could probably have that one paid off completely

then take the new payment amount, & split it equally between Vanquis & Very

[Deleted User]

raindrops wrote: »

1. Very £850.64 at 44.90%
2. Vanquis £1162.28 at 39.90%
3. Capital One £194.72 at 34.08%
HSBC £3865 which was sold to a debt collector so there's no interests

You are currently paying Vanquis more because the debt is more, not because they are charging higher interest.

The most efficient way to pay off debt is to pay the minimum towards all debts, and use any available/surplus that you have to overpay on the debt that is costing you the most in interest - in this case VERY

This means that overall you will payback more of the capital [actual debt] and pay less in interest.

Once you have fully repaid VERY move on to focusing on the next most expensive debt [Vanquis]. But always pay the minimum to all other debts

I have made some comments above,

HTH,

D9