what is the best option

elly2

Well ctc have done it again, i put my new claim in 5 weeks ago and was getting £190 per week last week i got a letter to tell me my new award and they have put £800 in my bank account(i know they will want this back but if i decide to spend it they will take reduced payments with me being on benifits) so do i use it to pay of a debt or leave it in the bank for when they ask for it back i have 2 debts in mind
one is capital one cc which has a balance of £972.87 usually pay the min at £60 per month (but paid £100 off this this morning) so new balance is £872 apr is high about 39.? i think.
also have a provident loan of £464 which i pay at £80 per month which still has a long time to run(i know that if i pay this early the amount will be reduced due to interest charges)
i dont know which is best tbh i would pay the provident one and buy a new fridge frezzer(mine is leaking for some reason)and a few bits i really need like a new winter coat (havent got one at all just a long wooly cardie which is ok but doesnt keep me warm or dry iyswim) but with the apr being so high on the cc i am sort of stuck on which would be better to pay off(sorry for the ramble)

Lucy1982_2

Would it not be worth popping the money in a high interest savings account until they ask for it back? then you can put the money earned towards you debts?

I would be wary of creating a debt, if you know that they would want the money back.

Kevicho

Will you have to pay interest on the CTC money if they do want it back?

If not then i would pay the 39%! debt and then pay the CTC back in installments as it will work out a lot cheaper for you.

bear in mind you will have an extra 60 pounds free a month, which you can use towards the provident loan (are the figures you put for that correct? "464 which i pay at £80" is 6 months)

elly2

Kevicho wrote: »

Will you have to pay interest on the CTC money if they do want it back? i dont think they charge interest will have to look into this

If not then i would pay the 39%! debt and then pay the CTC back in installments as it will work out a lot cheaper for you.

bear in mind you will have an extra 60 pounds free a month, which you can use towards the provident loan (are the figures you put for that correct? "464 which i pay at £80" is 6 months)

yes i owe 464 on this and pay £80 per month

rayday2

My sister was given 6k by mistake and they apparently would not take it back but her future award years they will take it off her. She said she was paying a card off but I noticed "things" appear in the house too.

Its OK but what if your circumstances change in the next few years and you desparetly need the money?

On the flip side if you paid things off but instead of thinking I have £? extra a month if you put that payment away then you are sort of covering yourself if you get me.

There are so many ways to look at it -its very tricky can see why you set the topic up lol!

elly2

Have rang provident and they said if i paid off the balance this week it would cost me £359.15 then i would have £80 per month extra to pay off the cc arrrgggg i dont know what to do i know i would be creating a debt but i would be paying one debt off and clearing another quicker plus i could get my fridge freezer/fridge only maybe as i have a chest freezer and a coat its bloody freezing here in the north east, i dont know why they do this to me x.