Debt payment order advice

paddyposh

Hi all,

I have several debts of varying amounts, from £250 to £6,000 with different creditors. I am currently paying them all back a small amount due to job change, however as of next month I can pay off more per month.

What would people recommend, start from the lowest and get rid of them quickly within a few months? Or pay off larger amounts from the higher debts and go down in %?

All defaults were registered in 2014, so it won’t make much of a difference I guess in terms to my credit rating. As paid off defaults wont make my rating improve will it, it will just be when they drop off in 2020?

anna_1977

are any charging interest? If so, pay those.
If they are 0% I would approach them all for Full & final settlement figures and see if I could pay them off quickly.
They will drop off from 6 years from date of Default, I'd imagine it looks better to future creditors to have more satisfied defaults quicker? Someone else with more knowledge will answer that

paddyposh

Thank you. They have all defaulted, so no charges or interest etc. I can't afford to F&F them, well maybe the two lower ones I have (£250 and £330).

Others will be monthly payments at the moment.

MrsTinks

One possibility is to save up and then F&F some of them in a few months?

National_Debtline

Hi Paddyposh,


I would suggest you increase the monthly offers to them all and make sure that they are still getting a fair amount each and they will all clear at the same time. Be careful of paying more to smaller debts, this is known as a preference payment and if the other debts become aware of disproportional payments they may not want to negotiate with you in the future. You might even be able to look into a free DMP to help you with payments.


Satisfied defaults will be more positive than outstanding ones, but it may not give you an instant improvement to your rating.


Laura
@natdebtline

paddyposh

Hi Laura,

Thank you for that advice, I did think that! But I also thought that clearing smaller ones sooner would be beneficial.

Thanks
Patrick