Got some money which to pay off?

carlih1

Hi,

I am getting some money through (about £1000), i have a few smallish debts and a couple of larger ones i was wondering which i should pay off.

I owe Argos - 121.98 - Defaulted
Busy Bees CCJ - 737.77
Comet - 132.80
additions - 58.87 with a default.

Which comes to £1051.42, which i can pay off.

I have other debts but these are my priority none of them have interest payable on them but i want to improve my credit record will paying these off and having them marked as settled help at all, i am hpoing to get a mortgage within the next couple of months?

Carls x

Welshlassie

You don't say what the APR's are on these debts, as there is no interest payable on them, why not pay off the debts with interest building up, therefore giving you more money to play with and pay off the debts with the highest interest first.

mioliere

carlih1 wrote: »

Hi,

I am getting some money through (about £1000), i have a few smallish debts and a couple of larger ones i was wondering which i should pay off.

I owe Argos - 121.98 - Defaulted
Busy Bees CCJ - 737.77
Comet - 132.80
additions - 58.87 with a default.

Which comes to £1051.42, which i can pay off.

I have other debts but these are my priority none of them have interest payable on them but i want to improve my credit record will paying these off and having them marked as settled help at all, i am hpoing to get a mortgage within the next couple of months?

Carls x

Would definitely pay off the higher interest debts - I think I remember Martin saying ages ago to get rid of those first even before you start putting money away as savings. Also, when you have paid off the defaults and ccjs ask the court involved for 'certificates of satisfaction' which will go on your record and improve your credit rating. Good luck!

carlih1

mioliere wrote: »

Would definitely pay off the higher interest debts - I think I remember Martin saying ages ago to get rid of those first even before you start putting money away as savings. Also, when you have paid off the defaults and ccjs ask the court involved for 'certificates of satisfaction' which will go on your record and improve your credit rating. Good luck!

Ooh i didn't know about that, how do i go about doing this? x

Storm

General rule is to pay off the debt(s) with the highest APR first, however I can understand why you want these debts to show as settled if there's defaults on there.

Based on the ones you've posted I would pay Argos, BusyBees & Additions in full, and the remainder to Comet as you would substantially reduce this one, but it doesn't appear to have a default.

mioliere

carlih1 wrote: »

Ooh i didn't know about that, how do i go about doing this? x

I think you need to phone or write to the court which dealt with the cases that resulted in ccjs and defaults, quote the relevant case numbers and tell then you have settled the debts in full. However, if I've got that wrong, I'm sure the Citizen's Advice Bureau would be able to help. On your credit rating, it will still show that you've had debt problems but will also show that you have paid them off which will improve your standing. Good luck and well done for not being tempted to have a blow-out with the money! It'll be a great feeling having paid some debts off!

carlih1

I paid one off today, a debt i had with Verbaudet which had an outstanding balance on £109.00 paid in full over the phone felt great! )