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Paying off debts - what order should I pay off?
hugh1964
Posts: 7 Forumite
Looking for some advice on how to tackle outstanding debt. I am managing my own DMP with 5 creditors.
The 2 largest debts have defaults recorded against them and are being dealt with by third party agencies. I have submitted CCA requests to both of these and awaiting responses.
The next 2 are Barclaycard with an arrangement to pay on them charging 3% interest per annum.
The lowest debt is on a balloon payment I could not make for a car. That debt is not showing default or AP on any credit report, everything says OK.
The plan is to have all debts cleared by the end of the year, and I have enough to clear off the smallest debt this month (the balloon payment showing OK). Question is, should I do that or continue to save and attack the defaults first (assuming I need to pay back all if the CCA request does not achieve anything)?
The 2 largest debts have defaults recorded against them and are being dealt with by third party agencies. I have submitted CCA requests to both of these and awaiting responses.
The next 2 are Barclaycard with an arrangement to pay on them charging 3% interest per annum.
The lowest debt is on a balloon payment I could not make for a car. That debt is not showing default or AP on any credit report, everything says OK.
The plan is to have all debts cleared by the end of the year, and I have enough to clear off the smallest debt this month (the balloon payment showing OK). Question is, should I do that or continue to save and attack the defaults first (assuming I need to pay back all if the CCA request does not achieve anything)?
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Comments
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I would await the outcome of your information request first.
If they are unable to comply, that could free up a certain amount of money to tackle the rest with.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
The defaults are already defaulted - unless you can completely clear them with this month's payment, that's not going to change, so I'd stick with your present plan. Plus you'll know the outcome of the CCA requests by then.0
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The reason I am aggressively tackling the debts this year as with a growing family I would like to move in 2017. By that point, the defaults will be 5 years old, and while by no means any guarantee I can get a mortgage, I'd like to show I have resolved my previous issues and my behaviour is different (trust me, I never want to even see another unsecured loan or credit card again).
Is that the correct approach here, or should I just write off applying for any kind of mortgage for a few years?0
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