What to clear first?

Bloomers87

I have always been a trawler when it come to forums so this is my first post. Firstly I would like to thank the members of this forum for giving me the information and motivation to clear my debts.

My partner and I have been hiding from debts that built up whilst she was on maternity leave for sometime and have now decided to deal with them so that we can save to get married and buy a bigger house before our two boys get too old to share (Boys 3 and 4 yrs old).

Our plan is to pay minum payments on debts all debts putting all other cash to clear one debt at time, my question is which debts do we clear first?

Halifax mortgage arrears £3111.93 3.99%
Santander consumer finance £3840 - CCJ public order notice against our property- can't sell our house until this debt is settled. 0%
Unsecured debts to 7 other parties £6,831.06 0%

Better_Off_1983

Mortgage arrears first try and pay more than the min payments on everything, but the lion's share should go on the mortgage arrears.

sandstanreiter

Always want to clear the highest interest rate debt first. Unless you have student loans (or similar) that are non-dischargable, then you can consider those as more of a "real debt" that needs paid off regardless of financial condition.

Bloomers87

Thanks for the reply I will clear the mortage arrears first, then should I concentrate on clearing the santander loan that is secured against our property next?


If the other debts are happy with lower payments and I am paying no interest on them what would be the benefit to pay more on them whilst clearing 1 debt at at a time?

FireWyrm

The 'other' debts are civil. Clear the mortgage arrears as a matter of urgency first. Then deal with the 'secured' debt and finally, the civil debts to the other companies.

Can you post an SOA? Assume you have already done the cut back and make do exercises so often suggested on this forum?

Bloomers87

I havent done an SOA on here, but we have cut back and budgeted on my spreadsheet at home I have disposable income of around £800 less emergencies and the odd birthday present.

FireWyrm

So, in 4 months, you *should* have managed to clear your mortgage arrears? I would make that an absolute priority to clear as fast as possible.

Clear out Santander after which should get your house out from under the cosh by August next year if you start now. After that, THEN deal with the lesser stuff and pay that off a little more slowly.