And then there were three... Is our plan OK?

WifeandMummy

Hello


After 5 years, there is light at the end of the tunnel. We now have 3 debts, split up as follows:


CC1 - £2200 - 29.5% APR
CC2 - £5400 - 0%
DEBT AGENCY - £2303 - 0% (This debt defaulted in March 2011)


Basically our plan at the moment is to throw everything we have at CC1 and have it paid off by Christmas at the latest.


Then we want to focus on CC2 before interest gets added.


We pay £50.06 per month to the debt agency and that is due to be paid off by 2017 - the default will also drop off in this year, I just wanted to check that our plan sounds ok? is there any benefit to paying off a defaulted balance before the default has ended? Obviously when CC2 is paid then I will over pay the debt agency but I just wanted to make sure I shouldn't be prioritising this particular debt over the other 2 for any reason? - Hope that makes sense?


Thanks in advance X

Swampy3k

I'd maybe transfer CC1 to a new card which has 0% interest as you'll save the 29.5%

bambos

As Davie G said, it would be prudent to try and move cc1 debt to 0% but failing that I would be making min payments on cc2 to ensure cc1 gets paid off ASAP. Then throw everything you have into cc2 before the 0% ends. Good luck.