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Which debts to pay first?
amy1695
Posts: 12 Forumite
I have a few debts with different people. I am currently paying a council tax debt from a few years ago at £40 per week. Which order should I go in after this? Should I pay off the 'newest' debts, the most expensive, the telecommunications or the bank? Or doesn't it really matter? None of them are attempting to get their money back. I just want to pay it as it is my debt.
I'm in a position now where I can afford to start paying all my debts off. I don't want a debt management plan as I can afford to do it and wouldn't want this going on my credit file as I have paid everything on time for over 2 years except for the defaults which occurred before this.
I'm in a position now where I can afford to start paying all my debts off. I don't want a debt management plan as I can afford to do it and wouldn't want this going on my credit file as I have paid everything on time for over 2 years except for the defaults which occurred before this.
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Comments
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Hi
Generally, if interest is being applied to any of your debts the accounts with the highest interest rates would make the most sense to pay off first. That’s because it will cost you less overall.
Some people find it more motivating to clear smaller debts first, as they can see the number of debts they have reduce. That depends on how you feel about your situation really.
James
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
As above, interest aside I would nail the least to pay off debts first. Personally, this would motivate me alot more.
Good luck!0 -
Thanks. I think I'll do that
none of them have an interest so I'll just start with the smallest 0 -
Thanks. I think I'll do that none of them have an interest so I'll just start with the smallest
Amy if your not been chased for these accounts do you think it's wise to wake up a sleeping dog ?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
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