Starting out getting debt free - feeling scared

Andyjflet

I think fatbellys advice is sound, if paying a couple of these off isn't causing you any hardship then get them paid straight off, keep the payment text/receipt whatever. One less thing to deal with down the line. 

enthusiasticsaver

debtspiraldisaster said:

Hello again,
I need some advice. I have multiple accounts (credit cards and loans) which are all now in turn being defaulted. I have a mixture of credit cards and loans. Question is should I be paying off the smaller debts now in full with the money I’m building up by not paying repayments each month or should I be saving it all up to build a lump sum? I’ve got one large loan defaulting which I’ll need to save up for so paying the smaller ones off will slow this process but in time I’d only have that one left. Hope that makes sense 

Personally I would not pay anything for now just build up emergency savings and wait for defaults. Settlements are way down the line so I would not worry about those for now either.  Just focus on a budget you can work with and a figure eventually you can allocate to the debts in a DMP regularly.  You may get F and Fs accepted eventually after the debts are sold on but not usually right at the beginning of a debt solution.