What order to pay off debts?

welly_59

I’m in the position that I can pay off the majority of the debts I’ve accrued over the last few years, but I’m wondering what would be the best order to pay them off.

I have a lump sum I can use for a large portion nd greatly increased expendable income as of this month.

Between my wife and I there are a number of ccjs, a couple of older defaults, a couple of newer defaults, and a couple of accounts with late payments.

I was thinking the following order:
1. Credit cards to save paying interest.
2. Accounts currently in arrears but not yet defaulted.
3. Ccj’s
4. Newer defaults
5. Older defaults

Anyone have a different opinion?

Willing2Learn

If it was me, I would pay off my debts in the following order:

1. Credit cards - to save paying interest
2. CCJ - To banish any prospect of enforcement
3. Accounts currently in arrears - To prevent any new defaults
4. Newer defaults - Assuming they are my debts
5. Older defaults - Assuming they are my debts AND are not Statute Barred

National_Debtline

Hi welly_59


It would help if we knew a bit more about your debts and the amount you can afford to offer (lump sum and ongoing). The best way to do this is to complete a statement of affairs and post it back here.


Here is the link http://www.stoozing.com/calculator/soa.php, just remember to format for MSE.


Best wishes


Susie
@natdebtline