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waspsandwich

Hi i was off work for several months last year  with depression and have ended up in a biit of a mess. I am paying as much as i can on my cards each month but with the interest rates means im not really getting anywhere. I have just recived a compensation payment of 4k and obviously its all going onto my cards.
My issue is am i best to pay off all the lowest interest ones that i can, pay of less cards but the ones that are the highest interest or split the money to pay some to each of them?
I have 5 cards ranging from 895 to1750 any advice would be much appreciated

DullGreyGuy

Highest interest ones will be the ones that save you the most

fatbelly

You need debt advice.

The lump sum may be best used as an emergency fund at least in the short term.

Hop over to debt free wannabe and give us the full picture

In the meantime maintain the minimum contractual payments on the debts

itsthelittlethings

Pay off the minimum payments I think on all cards and put the extra towards the highest interest rates.

Grumpy_chap

waspsandwich said:

Hi i was off work for several months last year  with depression and have ended up in a biit of a mess. I am paying as much as i can on my cards each month but with the interest rates means im not really getting anywhere. I have just recived a compensation payment of 4k and obviously its all going onto my cards.
My issue is am i best to pay off all the lowest interest ones that i can, pay of less cards but the ones that are the highest interest or split the money to pay some to each of them?
I have 5 cards ranging from 895 to1750 any advice would be much appreciated

The simple answer to the question is to pay off the highest interest cards first and then "snowball" down to the lower interest cards.  Be sure not to default on any cards either, so make minimum payments to the lower interest cards.

The longer answer would be to prepare a SoA (Statement of Affairs) and understand your full budget.  Once you have prepared this, if you share the outcome in the DfW (Debt-free Wanabe) area of the forum, you will get some helpful suggestions of any possible efficiencies.

MEM62

@waspsandwich I would suggest that you keep some of that £4k as an emergency fund.  (Perhaps £1,000?)  Post up an SoA and the very well informed guys and girls on here will be able to give you further advice.  You should be looking to attack the debt with the highest interest rate first.      

Nasqueron

TBH you need to raise a financial hardship case with all the lenders - they are likely to at least freeze the interest for you for a period, if nothing else (they do sometimes agree to refund a few recent charges if applicable). That will get you cleared a lot faster.

Alternatively as above, hit the highest interest rate cards the most, minimum on the lowest, the sooner you clear those, the more money it frees up to hit those with lower rates