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    • willstewart
    • By willstewart 15th Jan 20, 11:59 AM
    • 169Posts
    • 213Thanks
    willstewart
    CCJ or overdraft first?
    • #1
    • 15th Jan 20, 11:59 AM
    CCJ or overdraft first? 15th Jan 20 at 11:59 AM
    Paid off my car loan a year or two ago. Or at least I thought I had.

    Months later, I got a CCJ as I apparently hadn't paid 3 payments somewhere along the line.

    About £500 to pay on this and I've a direct debit over £50 a month going towards this.

    Also got an overdraft with my bank that costs around £50+ a month in charges.

    I know you should pay the thing with the highest interest rate first, but if I were say to pay £100 a month off my overdraft, it would reduce it by say £4-£5 a month, which seems pitiful for the amount being put towards it.

    I'm not sure if clearing the CCJ first (and then putting that £50 towards the overdraft) would be more prudent. Probably won't make the slightest bit of difference to my credit record, but at least that will be paid off and it would be one less payment a month going out.
Page 1
    • twhitehousescat
    • By twhitehousescat 15th Jan 20, 12:01 PM
    • 4,551 Posts
    • 5,604 Thanks
    twhitehousescat
    • #2
    • 15th Jan 20, 12:01 PM
    • #2
    • 15th Jan 20, 12:01 PM
    if you fail payments on the ccj you will have bailiffs on your doorstep
    Time pretending I was asleep whilst under his desk , has given me insight to this sordid world
    • Willing2Learn
    • By Willing2Learn 15th Jan 20, 12:03 PM
    • 5,199 Posts
    • 4,840 Thanks
    Willing2Learn
    • #3
    • 15th Jan 20, 12:03 PM
    • #3
    • 15th Jan 20, 12:03 PM
    Assuming you have an instalment plan to repay your CCJ, then if it were me, I would just stick with the instalments and clear the overdraft as that will save you money. Basically it is far more MSE to clear the overdraft first. Plus there is always the risk that your bank could withdraw your overdraft facility without notice.

    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • sourcrates
    • By sourcrates 15th Jan 20, 12:29 PM
    • 19,131 Posts
    • 18,057 Thanks
    sourcrates
    • #4
    • 15th Jan 20, 12:29 PM
    • #4
    • 15th Jan 20, 12:29 PM
    if you fail payments on the ccj you will have bailiffs on your doorstep
    Originally posted by twhitehousescat
    Only if the creditor splashes out more money to instruct them.
    Your post should read “may” have bailiffs on your doorstep, most creditors won’t further enforce judgements due to the costs involved.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, 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 expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • xlnc99
    • By xlnc99 18th Jan 20, 10:44 AM
    • 734 Posts
    • 114 Thanks
    xlnc99
    • #5
    • 18th Jan 20, 10:44 AM
    • #5
    • 18th Jan 20, 10:44 AM
    overdraft first - at you least can start reparing your credit file by clearing your OD as quickly as possibble. As you got your CCJ you cant do anything about it. Its on your file for 6 years now. You are stuck with it. Makes little difference if its paid of or not in terms of your credit file. Id stop paying your CCJ and put everything towards your OD and your other debts. Once you are debt free then id focus on the CCJ.

    Bailffs wont come round
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