What to repay?

gettingthere1984

Morning all. I'll try and keep this as short as possible.
I've recently come into some money (13K) and I want to use it to repay my debts. I will list the different debts I have, and hopefully one of you smart people will be able to make a recommendation of what I should repay first.
So;
Nationwide loan - £3553 (settlement figure as of today)
Barclay card CC £6300 (£3000 of this is interest free, the rest is on fixed 7%, my repayments are only clearing the 7% balance and in Oct 14 the £3000 will revert to 19.9%)
Lloyds OD £2000 (£6pm + 19%apr, £400 avail)
HMRC Corp tax £909 (due in June)
Accountant Fees £600 (due now)

That's about it, if you need any more info then ask, though I'm hoping to sort this out in the next couple of days.

Thanks all!

almamatters1985

Why does it matter what you pay off first? Your debts as listed are £13362 (although you've put that you have £400 free on the OD so that means your debts are actually £12962) so you can pay everything off today.

Are you earmarking some of the 13k for something else? Is that why you're asking if you can leave some of the debt? If so, I'd pay off accountant, HMRC and overdraft first.

Hope that helps!

SRT81

Yep. Unless you're planning on using some of that £13k for something else you could be debt-free within a few phonecalls.

My debt's just over £13k as well, if that sum of money landed in my lap I'd be debt-free within the hour.

gettingthere1984

Yeah I thought as much, I forgot to list that I have another barclays CC with £1200 on it, but it's on a fixed APR of 3% for life, and I just chip away at it every month and doesn't cost much in interest. Should I continue to do the same with that then?

Thanks for your responses.

woodformoretrees

gettingthere1984 wrote: »

Yeah I thought as much, I forgot to list that I have another barclays CC with £1200 on it, but it's on a fixed APR of 3% for life, and I just chip away at it every month and doesn't cost much in interest. Should I continue to do the same with that then?

Thanks for your responses.

I'd be tempted to pay that off with what's spare each month (once the 13K is paid off). I guess it might not take very long and although it's not costing a great deal, it's still costing.

thecassman86

gettingthere1984 wrote: »

Yeah I thought as much, I forgot to list that I have another barclays CC with £1200 on it, but it's on a fixed APR of 3% for life, and I just chip away at it every month and doesn't cost much in interest. Should I continue to do the same with that then?

Thanks for your responses.

Presumably the money you currently pay towards your debts adds up to a fair few quid?... Use the new money to pay off every debt apart from this Barclays CC and then put all the money you currently pay towards debt towards this one; can't imagine it'd take you more than a couple of months.

FinanciallyUnsavvy

Yes, yes yes - pay it all off today!

I know having 13k at your disposal sounds wonderful, and I'm sure you'd like to have some spare cash out of it.. but just think how AMAZING it will feel, in a few hours, to know that you no longer have ANY debt?! The extra income you'll have each month that you're currently using for repayments will soon blow that lump sum into insignificance.

Go on.. do it.. it will feel amazing!

PeacefulSlumber

Hi

I agree with previous posters. At the beginning of January we had over £40k in unsecured debts and were struggling to feed the kids and pay for the cost of everyday living expenses. We had a change in circumstances and took the tough decision to sell our house and downsize. The equity hit my bank account at 2pm on completion day. By 6pm I was debt free and had decent nest egg in the bank. By 8pm that evening we were in the local restaurant having a meal and a drink to celebrate, the first time we've eaten out without guilt or paying on credit in 5 years and it felt amazing!
I would urge you to use the whole lot to pay off as much as possible....TODAY!!
Once I had paid my last credit card off I burst into tears of relief and 2 months later I am enjoying the freedom of being debt free and you will feel the same.
Good luck!

getmore4less

gettingthere1984 wrote: »

Yeah I thought as much, I forgot to list that I have another barclays CC with £1200 on it, but it's on a fixed APR of 3% for life, and I just chip away at it every month and doesn't cost much in interest. Should I continue to do the same with that then?

Thanks for your responses.

what else did you forget?

Any big bills coming up before you can save for them so will need to borrow more money...

Do a SOA and a 12month cashflow forcast and snowball th debts.