Debt Advice

betterfinancialfuture

I am currently carrying a fair bit of debt and looking for a bit of advice.

1. I have credit card debt which I am currently paying the minimum
2. Some default credit card debt which i am paying off
3. I have some arrears on car finance

I have been fortunate to get some additional money but wanted to know where would that money be best placed to help my debt?

Singlespeeder

I suspect folks may require significantly more information. The devil is in the detail !

betterfinancialfuture

1. The credit card debt: £5800
2. Default Crediit Cards with debt management companies: £8000
3. Outstanding car finance: £1600 - i paid that off just today actually

sourcrates

Hi and welcome to MSE.

In order to advise on this, we need to know your outstanding debt totals, who owns them, and how much money you have available to make settlement offers with.

Its best to list this all first, so we don`t have to keep drip feeding information from you, that way we can help you better.

betterfinancialfuture

Sourcrates, thanks for getting back to me, but i think ultimately what i wanted to know is:
1. shall i pay off my expensive debt? credit card debt is obviously accumulating interest
2. pay off the debt with the management companies, no interest is accruing there
my initial plan was to split my monthly payments 75% to debt management and the remaining 25% to top-up the existing minimum payments i pay on my credit cards

sourcrates

Interest bearing debt first would be the sencible choice, yes.