2 years to clear most of my debts

AngryDog

Hi,

I've FINALLY started to take my debts 100% seriously.
I have been in a self managed DMP, making payments to my creditors each month, but this is getting tiresome and I need to get sorted else I'll be paying my debts off until I die basically.

So today I paid off 2 bad debts and the remaining balance of a "good" debt.

So gone are my Mint and RBS credit cards, settled in full! Gone is my monthly payment I was making on a TV I bought in 2009!

Total saving, £25.04 a month, which will be used on other debts.
Total off my debt - £725.17.

And it feels good to have got these paid off!

My aim is to pay off a debt every 2 months, though it is more likely that this will be based on offers / partially satisfied, but its better than nothing.

Now, do I pay off another "good" debt (Sofa's, £22.87 a month, 0% interest - £300) or do I attempt to pay off another bad debt instead, saving only £7.50 a month?

Dilemma's Dilemma's..

The odd thing is, is that even though it feels good to have these paid off, I feel a little like I've just wasted money as I sorta have nothing to show for it - is this normal?

AngryDog

Well, 3 offer letters ready to send. Let the negotiations begin!

Wish me luck!

never_too_old

Good luck

jwil

Good luck! I think it's normal to feel like you've wasted money, though mine's generally on what I wasted it on building up the debt.

Are your DMP debts on 0%? The general consensus is to pay off the highest interest first. I'd be tempted though to clear the one which saves the greatest amount of money each month i.e. the sofa, and then use that extra cash to snowball towards the next debt.

Hope you have some luck with your offers.

AngryDog

Thank you both .

I am on 0% interest on all debts. The TV I was being charged interest on (only saved £15 over all, but its still £15), which is why I paid that one off.

I think you're right about the Sofa, I got some over time and bonus this month (rare, rare things in my job lol) so I can use that to pay off the sofa's and then as you say, I'm £22.87 a month better off. I'll wait to see the results of my offers to my other creditors though first, as even though my parents are helping me pay those, I'd like to contribute to them you know?

I wasted alot on building up the debt, but hopefully I will learn my lesson.

AngryDog

well, had one of my offers turned down today . It was cheeky low offer of 20% mind lol. They counter offered with a 71% settlement which I cannot raise the funds for. I've counted with 28% as its the most I can raise..

Wish me luck!

AngryDog

Good bye m&s credit card!

Theyve accepted my part settlement offer to write the debt off so tomorrow I will be £1800 less in debt! So that's around £2500 paid off effectively!