Which debt first?

[charleyfarley]

Now I fully understand the mantra about paying off your most expensive debts first, but I'd welcome some advice here.

I've got 3 credit cards and a store account, 2 biggish ones and 2 little-ish. The little ones total together about £300, the biggish ones total about £4.5k, so not huge numbers but as I'm a lazy good-for-nothing benefit scrounger on Income-based JSA, then the numbers are big enough.

I can afford to pay the bills each month, altho' it's a struggle but I want to try and get rid of them all, it's just a question of which order. Do I try and pay a lump sum off against the small amounts to clear them, then use that saved money as an extra payment each month on the bigger, more expensive amounts? or is the lump sum better used to pay off an amount on the more expensive debt, even tho' it'll leave the smaller debts still outstanding?

Or do I keep the lump sum(£300) tucked away under the bed for a rainy day and carry on as I am?


Thanks for any advice

[Amethyst]

Re: Which debt first?

If the lump sum covers all the annoying little debts I'd use it for those, get them out of your hair, they can be more hassle in the long run, and you can concentrate on the big debt - a £300 payment off the big debt won't make much of a difference to your overall situation.

If the smaller debts come to more than the £300 you can always try splitting it proportionally between them and offer them full and final offers ?

[Amethyst]

Re: Which debt first?

And forgot to say, welcome back to the site, long time no see.

[LuggerBugs]

Re: Which debt first?

It's usually very satisfying to see a debt gone and out of the way. A box ticked, one down three to go, kinda thing. You will also benefit from no interest building on that debt, and any risk of silly charges being applied on all 4 accounts is negated, should something crop up in the future that you gave no control over.

[charleyfarley]

Re: Which debt first?

Thanks for your advice guys, I was thinking along similar lines, just wasn't too sure if I was doing the right thing








nice to be back Amethyst, hope you're ok

[Emerald]

Re: Which debt first?

I'd go for the little ones, something satisfying about paying off and closing accounts.