What Debt to pay first?

Brumwood

I am currently on a Pro rota payment plan for all my debts. I went through the Citizen's Advice Bureau to set up all my pro Rota arrangements and I have been paying religiously on time ever since. interest and additional charges have been frozen on all debts while pro rota payments are in place. I am currently in £10k worth of Debt with catalogues and credit cards.

I made a PPI Claim and was successful in my claim. the amount awarded is equivalent to 20% of my debt.

This was a claim against a old Historical catalogue account i had many years ago, which i defaulted on and the debt was sold off to a third party debt collector company.

As everything is frozen interest wise, i am unsure what to prioritise to pay off debt wise. I was thinking of paying off some of the smaller debts, however my payments arranged was quite low, so I wont be gaining any benefit income wise, aside from of course paying off the debt.

As the claim wont cover all the debts, and I was worried about invalidating my pro rota payments with other companies as a result of paying some off.

I was thinking of going to the CAB for advice but I am worried that would invalidate any pro rota payment they helped me set up.

the best plan I came up with was clear what debts I can and keep a small amount in a savings account for any problems that arise - like needing a new washing machine, stuff like that. I know I have read that it is best put everything into debt, but i feel a little better keeping some as a back up as I am by myself and don't have people to run to in a pinch.

Any advice?

Thanks in advance!

Willing2Learn

How old are the debts?

If the debts are old then I would recommend submitting a CCA request for each eligible account, to check whether the creditor has complaint paperwork.

If the creditors are not able to provide you with compliant paperwork, the debts would become unenforceable. Then you would have a choice. To either withhold further payment for each unenforceable debt, or to use the fact that the debts are unenforceable as leverage to get reduced full and final settlement amounts.

Edit: Welcome to the forum. Please do not post duplicate threads as it just gets confusing...

Edit #2: I've just been told that you were advised to repost your thread in the DFW board. Sorry if I came across rude...

[Deleted User]

Willing2Learn wrote: »

Please do not post duplicate threads as it just gets confusing...

The other thread was posted on the wrong board.
This is the correct one.

The OP was simply following instruction from me to re-post here and is not just randomly posting duplicate threads (as others have done).

-taff

Um...[from your other thread] you are on a debt management plan if they have frozen interest and you're paying reduced amounts.
I would do as above. First find out if the debts can be enforced by asking for a CCA.
If they can, and your debts are a few years old, I would offer a full and final payment of 10% to start with to some of your creditors depending on which ones you want to start with, the smallest first, or the largest first.

enthusiasticsaver

I would keep some back in your emergency fund and offer full and finals on a few to see if they will settle for less to get the debt paid off quicker. I don't see why the CAB should be bothered about that but you could always go self managed.

shirlgirl2004

Aside from paying the debts which has been addressed by others, first and foremost you should have an emergency fund so if something happens unexpectedly you do not need to take on further debt in the future.

Have you considered listening to The Dave Ramsey show or reading his book? He talks all about Baby Steps.