What to pay off first?

Zanzibar28

Hi, I'm pretty much a newbie so apologies if this sort of question has been answered before and I'm not finding it!

I'm currently on a DMP so most of my debt has had the interest frozen for the time being. I have two credit accounts which can't be included on it so I'm still paying interest on them so I want to get rid of ASAP but I can't work out which one to pay first.

One is a Simply Be account which I owe £94.09 on (interest rate 37.68% per annum) and the other is an Argos Card which I owe £270.70 on (interest rate 29.9% per annum). Which one should I try to clear first?

I'm hopeful that after pay day I could wipe out the Simply Be figure in one payment but I couldn't manage that with the Argos one. I just don't know which one will be more beneficial to clear first?

Any help with the sums would be greatly appreciated! Thanks

Powered_By_Pies

The Simply Be one has the higher interest even though the Argos amount is higher. From an outsider's point of view, I'd wipe out the SB one first, save maybe half or a quarter of the amount of the Argos one (if you can) then wipe that one out with the next pay cheque.

Sazzie23

Zanzibar28 wrote: »

Hi, I'm pretty much a newbie so apologies if this sort of question has been answered before and I'm not finding it!

I'm currently on a DMP so most of my debt has had the interest frozen for the time being. I have two credit accounts which can't be included on it so I'm still paying interest on them so I want to get rid of ASAP but I can't work out which one to pay first.

One is a Simply Be account which I owe £94.09 on (interest rate 37.68% per annum) and the other is an Argos Card which I owe £270.70 on (interest rate 29.9% per annum). Which one should I try to clear first?

I'm hopeful that after pay day I could wipe out the Simply Be figure in one payment but I couldn't manage that with the Argos one. I just don't know which one will be more beneficial to clear first?

Any help with the sums would be greatly appreciated! Thanks

Hi Zanzibar

I'd go with the simply be first just because you can do it in one go which hopefully will motivate you for the argos one.

There is a DMP support thread if you are interested, just check the DFW forum page for the link, we are usually on page1 (we post a lot!)

mum2one

Ditto i would get rid of Simply Be, - and put anything over towards Argos. xx

longtermplanner

I agree with clearing the Simply Be one first.

Why couldn't they be included in your DMP?

Zanzibar28

longtermplanner wrote: »

I agree with clearing the Simply Be one first.

Why couldn't they be included in your DMP?

Hey - thanks everyone for their input, that confirms what I was thinking!

I never thought about adding the Simply Be one to my DMP because it was a relatively low amount I thought I would clear quickly to begin with.

It took quite a while to get my DMP stuff set up so between the time I started setting it up and actually had it set up fully, I had used my Argos Card for something. Argos refused to accept the plan because I had spent on the card after trying to set up the DMP.

I think clearing the Simply Be one will motivate me...along with the MSE Debt Free Wannabe boards! :T