Successful PPI Claim but what debt to pay first?
Options
Brumwood
Posts: 8 Forumite
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 payment plans with some 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 payment plan they helped 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!
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 payment plans with some 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 payment plan they helped 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!
0
Comments
-
Any redress from the complaint should be offset automatically against those debts.
Have they sent you the redress by mistake? Or was it not from a debt that you defaulted on?0 -
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.0
-
I am currently on a payment plan for all my debts.
You really need to ascertain whether this money actually belongs to you or the provider of your Payment Plan. It may well be not down to you to choose who to pay...
You would get far more knowledgeable advice posting your queries on the Debt Free Wannabe section of this board.
https://forums.moneysavingexpert.com/forumdisplay.php?f=760 -
I am sorry I am think I am using the the wrong words...(all very jargon to me.) I paying my debts on a pro rata payement, the CAB wrote to my debtors on my behalf. im not on a debt management plan.0
-
-
This is a duplicate thread. That is not cool OP!!
https://forums.moneysavingexpert.com/showthread.php?t=6003806
I have answered on your other thread.I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job0 -
Willing2Learn wrote: »This is a duplicate thread. That is not cool OP!!0
-
hi this was not my intention to duplicate..I posted here originally and was advised to post over at the Debt free wannabe boards. which is what i did.
if I can delete this post I will do. thanks.0 -
Moneyineptitude wrote: »It's not a simple duplicate, I advised re-posting on a more appropriate board and provided a link to that board.hi this was not my intention to duplicate..I posted here originally and was advised to post over at the Debt free wannabe boards. which is what i did.
if I can delete this post I will do. thanks.I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job0 -
hi this was not my intention to duplicate..I posted here originally and was advised to post over at the Debt free wannabe boards. which is what i did.
You are being chastised because others have posted the same thing multiple times.
You did as recommended, but the user telling you off has clearly not read this thread properly first.0
This discussion has been closed.
Categories
- All Categories
- 343.3K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 248K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards