What order to pay debt off?

Good evening,

I am looking for some advice as to what order to pay my debts off, I have looked online but some say pay off the smallest credit card where as some say pay of the biggest.

My current debts are:

Aqua Credit Card - Balance £2050 Limit £2100
Barclaycard Credit Card - Balance £750 Limit £800
Marbles Credit Card - Balance £280 Limit 300
Everyday Loans - Balance £10200

I have budgeted that I can afford to pay them back,

Aqua - £100
Barclaycard - £50
Marbles - £25
And my contractual payment to everyday is £448

I do still have some money left over from the month that I would like to put towards some of my debt but where would it be best suited to go. I am to not use these credit cards anymore, just to get the balance but to full then spend little a month and then pay them off as to improve my rating.

Thanks

Comments

  • DawnW
    DawnW Posts: 7,419
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    It is usually suggested on here that you target the debt with the highest APR (and throw any extra money at that) paying the minimum on all the others. Some people however, prefer to target the smallest debt in the same way. Whichever you choose, you might want close the card (if it is a card) once it is paid off. However, you may get balance transfer offers when a debt is paid off.
    Do you have an emergency fund, to avoid for example having to spend on a card if a large appliance needs repair or replacement?
  • Hi,

    Yes, I keep x amount for my monthly living costs and y amount goes into a separate account should I need anything out of the ordinary that month. But I am still left with some money that I would like to pay off my debts quicker.

    Based on your reply, I think I will target the highest apr that way lowering the amount of interest charged and allowing me to pay off my debts sooner. Does that sound like a good idea?

    Thanks
  • Targeting the account with the highest APR first is always a good idea...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • I dont have any advice but I just wanted to say good luck.

    I'm in the same sort of situation in terms of amount of debt owed.
  • natlie
    natlie Posts: 1,687
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    Hi

    I am snowballing my debt in Whats the Cost in Balance order, I've closed two accounts since March and the next one a loan will be paid off in November, its tough going if you are making additional payments but it really is worth sticking too. seeing the balance go down and the end date is really motivating

    Nat
    DMP: £30,668 £3,364.02 DFD July 2024
  • Hi

    To help us get a better idea of where your money is going and for us to suggest savings etc you may want to fill in a statement of affairs http://www.stoozing.com/calculator/soa.php - format for MSE!

    The best thing to do is target the debt with the highest APR and overpay this. Make sure the other CC debts are at the minimum payment until you pay off the first CC then snowball that payment into the next one until you pay them all off then snowball that into the loan.

    Am assuming the Aqua CC is the highest APR and a nasty APR at that so try and do as much as you can to get in any extra money to hit it hard :) Anything lying around the house that you can sell? Get extra hours at work or weekend job etc?

    Good luck :)
    "Everything comes to him who hustles while he waits" Thomas Edison
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:
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