Which debts to pay off

Gareth19

Good morning to all you good people. After owing nearly £30000 I am almost debt free. I have a some outstanding credit but all are up to date with the exception of the old CCJ debt (HFC/Restons). I am fortunate enough to have received a lump sum of £7000 and I am looking for advice as to which debts is best to pay off first. This is what I owe :

HFC/Restons £5486.84 (CCJ registered in 2002 so its all well off my credit file etc and paying £37 per month). Not doing any harm but would like to pay this off (maybe for a reduced figure) simply beacuse of the time I have had it. Would like to see it gone.

HSBC loan £6127.56 (settlement figure of £5187.35 valid for 28 days). Paying £170.21 per month and have 3 years remaining on a 5 year loan.

HSBC credit card £1031.56 (APR 21.9%)
Barclaycard £1772.96 (APR 24.9%)
Creation Credit Card £1651.52 (APR 19.9%)

I am simply torn. I keep thinking but can not make up my mind on how to disperse this £7000. I was thinking of getting rid of the credit cards for starters but then thought maybe pay off the HSBC loan and one other because the credit cards are relitively small amounts and I can save and pay them off in 6 months or so. Really am struggling to think what's best.

Any ideas most welcome!

Mort

I would pay off the credit cards as they are having interest applied.

And congratulations on getting your debts down so much:beer:

emweaver

I would make full & final settlement offers on the credit cards and the HSBC loan, you might be able to get these all paid off. I managed to get most of mine to take a 50% settlement offer.

vee...5

Hi there im looking for some advice on which is the best pre paid cards to apply for?...........thanks xo

emweaver

vee...5 wrote: »

Hi there im looking for some advice on which is the best pre paid cards to apply for?...........thanks xo

I think you should start your own thread

ikkle87

I would send F&F offers to the 3 credit cards and the HSBC loan. If you could get them all to agree to settlement figures around 65% then you could clear all 4. x

Gareth19

emweaver wrote: »

I would make full & final settlement offers on the credit cards and the HSBC loan, you might be able to get these all paid off. I managed to get most of mine to take a 50% settlement offer.

Don't think I can make a full and final offer on the loan and credit cards as like I said they are all up to date etc so surely even they were to accept such an offer (which is unlikely since I haven't missed any payments) then it would harm my ever improving credit file?

sickasachip13

Hi,
Use the template from the National Debtline to do F&F offers to all and see who bites and what they'll settle for - be aware this might take a little while as it is a process of haggling - do not accept their first offer.

I settled two of my debts for just under 30% of what was owed. It's always worth a try. FWIW, don't say you have the money, it might be best to say a relative has offered to loan you (only the amount you are offering that creditor) specifically to clear a debt. Don't let on that you might have more. Also, I'd suggest putting a time limit on the offer - maybe 28 days.

SAAC

Gareth19

Mort wrote: »

I would pay off the credit cards as they are having interest applied.

And congratulations on getting your debts down so much:beer:

Yes that's sound advice I suppose. Thanks