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  • FIRST POST
    • pgray12
    • By pgray12 8th Mar 18, 11:11 PM
    • 1Posts
    • 0Thanks
    pgray12
    Which debt to prioritise?
    • #1
    • 8th Mar 18, 11:11 PM
    Which debt to prioritise? 8th Mar 18 at 11:11 PM
    Hi all

    have several debts (outlined below). got myself into financial difficulty, being stupid taking out credit then losing job. Currently working, taking home approx 1900 after tax, with 250 left over after expenditures (rent, bills, childcare, childsupport etc). I have also undertaken some freelance work to help clear debts, which will bring in an extra 2000 over the next month. i really want to clear my debts, but is there particular debts that i should target as a priority? obviously payday loan will be targeted first, and probably council tax after that. After this, should i target those which are defaulting on the credit file (see below)? my credit history is pretty awful, and one day i would like to buy my own home, so would it be wise to satisfy these defaults first? or should i clear the other debts leaving just one bigger debt (1800 to debt collection agency)? (psychologically this would be better it think!). All debts apart from payday loan are currently not subject to interest.

    whats more annoying is my ex partner owes me 700, but didnt get any agreement written down, but can only blame myself i guess.


    current debts:

    debt collection agency 1800 (defaulting on credit file)
    credit- 350
    payday loan (300)
    overdraft (500) (interest frozen currently)
    unpaid phone bill (150) (defaulting on credit file)
    unpaid council tax (200)
    overpaid tax credits (1000)
Page 1
    • sourcrates
    • By sourcrates 8th Mar 18, 11:50 PM
    • 14,006 Posts
    • 13,263 Thanks
    sourcrates
    • #2
    • 8th Mar 18, 11:50 PM
    • #2
    • 8th Mar 18, 11:50 PM
    but is there particular debts that i should target as a priority? obviously payday loan will be targeted first, and probably council tax after that.
    Originally posted by pgray12
    The only priority debt you have is the council tax.

    If you do not have an arrangement already agreed with the council, then that is your no 1 priority.

    Failure to pay CT can result in bailiffs at your door very quickly, the council can obtain a liability order without resorting to the courts.

    All the rest are non essential, non priority debts and can be paid off as and when you choose.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • fatbelly
    • By fatbelly 9th Mar 18, 7:27 AM
    • 12,238 Posts
    • 9,274 Thanks
    fatbelly
    • #3
    • 9th Mar 18, 7:27 AM
    • #3
    • 9th Mar 18, 7:27 AM
    If you're not doing a debt management plan, then after council tax, sort out the payday lender if that is the only one charging interest.

    Then maybe save for lump sums to clear the others by full & final settlement (not tax credits) - and make sure you are not banking where you have debts.
    • Robots
    • By Robots 9th Mar 18, 7:35 AM
    • 51 Posts
    • 492 Thanks
    Robots
    • #4
    • 9th Mar 18, 7:35 AM
    • #4
    • 9th Mar 18, 7:35 AM
    You say your credit history is pretty dismal anyway so I would call StwpChange or National Debtline who can advise on what is best to do here.
    Veteran gamer and clean freak
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