Which to pay off??

sallyx

Ok Guys I need your expert advice
We currently have the following debts on a DMP with CCCS but I am saving so that we can pay them off one by one
HSBC Overdraft £2068.69
HSBC Credit Card /DCA £4161.54
Egg Loan / DCA £4590.48
Car loan Capital Bank/DCA £3708.16

All have frozen interest apart from HSBC Overdraft :mad: and at the moment this balance is rising as interest is higher than the amount we are paying.

Logically is would appear best to clear this debt first? Does anyone have any experience of offering a full and final on a HSBC overdraft? Are they likely to accept or will we have to pay it all back? We were also offered a 60% off the balance of the Car loan back in december for a full and final settlement and I am tempted to pay this off first as it would clear such a huge amount of our debts.

Thanks if you have got this far

postingalwaysposting

I would go for the debt which is incuring the most interest so the hsbc overdraft. You could ask for a full and final but i will be honest and say i dont know what they might offer back. I think if you save chunks can you not give the money to cccs to distribute?

sallyx

Yeah I can save in chunks and give to CCCS to pay off but I kind of wanted to be able to clear debts 1 at a time so I felt like I was achieving something. I guess I also thought that if I offered big chunks they would be less inclined to offer a F&F settlement figure? Just want to get this det paid off as quickly as I can

Little_Pickle

Hi Sally, I'd plump for paying off the only one with interest first.
But it might be worth working out how much interest there would be on the overdraft if you paid the Car loan first...

If it's not too much you might want to pay off the car first and mentally, it might be better to get rid of that one before tackling the overdraft.

It could work out about the same in the end if you pay off the car and then the overdraft (plus interest).

But then again, your offer to pay off the car might not stand for too much longer... hmmm

if you pay off the overdraft then car you would be paying back £2068.69
(plus interest) + £3708.16 = £5776.85.

If you pay off the car first then the overdraft, you would be paying £2224.90 + 2068.69 (plus longer interest period) = minimum of £4293.59... then you have to add the interest.

If the cost of the interest is below £1483.26 then it might be worth paying the car back first...

Sorry I couldn't be of more help! I think I've just hurt my brain!!!
I hope that makes sense?!?!?

Let us know the interest rate, then maybe we can help you more!

good luck!
LP
xox

Sea78

HI hon - I had exactly the same with the overdraft and HSBC, but then have FINALLY referred it to a DCA - only about 2 months ago though and so they probably will do this in the next few months. If it's going to take you a while to save up anyway it might be worth working out nearer the time which debt you want to clear iyswim?

I'm currently saving up to pay off barclaycard (which is one of the smallest of the debts) but this is after paying off OH's CC (massive grrrrrrr), although all his overtime is going to pay that. By the time I have that much saved up however, it might be worth me finding out about f%fs on some of the other debts that have gone to DCAs...

Sorry - not much help really!!

Sea x