In a mess...and never learn my lesson

dilemma10

Hi all,

I really am in a pickle and not sure which way round to pay things off to finally get to an improving credit rating.

I just downloaded my report from Equifax, it did not make for pleasant reading (let's just say it's in the very poor category).

I earn great money but I am disorganised and irresponsible and now I need to put a stop to it. My question is, which do I pay off first?

Defaults:
Orange - £373 and was registered in 2011 (so drops off next year)
Halifax - £287 and was registered in 2011 (so drops off next year)
All other defaults are satisfied and/or will drop off between 2017-2020 - they are all for sums under £500 including one for £78

TSB Overdraft:
£3,000 and I live out of it (i.e. my salary goes into the current account with this overdraft) but I usually finish up just under it by the end of the month so I believe this is probably having just as much damage, if not more to me each month than the old debts, it also costs me about £600 a year in fees to manage.

Car Loan:
£10k but I am embarrassed to say with the high APR it currently shows as £12k left to pay - it would be £7-8k to settle so I am looking into this

Credit Card:
Aqua - £200, small limit but is maxed which is daft given how small the amount is for

I would have liked to get a consolidation loan and settle the car, overdraft and satisfy all of the defaults but I cannot even get one of these without a guarantor and again, high APR rates...

What should I do? I am crazy for amounting such trivial debts given great income and surplus each month but now I am ready to pay these off, which way around shall I do it?

Another thing - I am a believer in paying back all debts but I keep reading that it may be best to let them 'drop off'? Seems strange to me.

Any advice welcomed!

[Deleted User]

Apart from the car, these aren't huge amounts.

So your first task is to figure out where your money is going. Do a SOA on the DFW boards where they will give you lots of advice for cutting costs and clearing the debts.

dilemma10

Deleted_User wrote: »

Apart from the car, these aren't huge amounts.

So your first task is to figure out where your money is going. Do a SOA on the DFW boards where they will give you lots of advice for cutting costs and clearing the debts.

Thanks so much - in all honesty I would feel ashamed to post on DFW but know I need to. Just because the amount of surplus cash would frustrate others who genuinely struggle whereas I am just an absolute tool!

I will give it a go though as know they will be helpful.