Rich S
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Your very lucky to have your Dad help you out. Try to get rid of your highest interest debts first, as the sooner you get rid of them, the less "extra interest" you are charged. You need to cut down on as much expenditure as possible and plough any spare money each month into paying off the debts.
The Moneysaving Expert website is brilliant, if I were you I would sign up to their weekly email newsletter. I have saved a fortune since I found this site.
Good luck. |
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American Werewolf
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YES PAY THE HIGHEST INTEREST THEN CONTACT THE LOAN PEOPLE AND THEY MAY COME TO AN AGREEMENT OF A LOWER FEE EACH MONTH |
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Mike
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http://www.insolvencyhelpline.co.uk/
go & have a look at this site they have all sorts of info |
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OriginalBubble
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Pay off the highest interest ones first. Or pay off the ones you are behind in payments with, or who are hassling you for more money.
Perhaps pay off the ones with the highest monthly payment, that way you will have more each month to pay on the others? |
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jeeps
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Phone a company called Pay Plan. They're on the web but I can't remember the address sorry. They are a free service and they were so helpful to me. They even managed to help write two of my debts off. Do it, phone them now, it's a big weight of your mind. |
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swatchwatch71
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I would say pay the highest interest one off first. I would not know as I am now total debt free, I have not always been that way my advice would be save up the cash and then buy the item. I have leaned the hard way but if you can,t afford something do without or save up the cash to buy it. Debt sucks if you buy everything "on tick" then you are paying over the odds for everything that you buy. Example.... I went into the shop to buy this computer it was on special offer £399 OR I could have bought it for 48 payments of £15 meaning a total amount to pay was £720. Why pay £720 for something you can have for £399 duhhhhhh. |
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maat
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first of all the debt with the highest interest. But if you know a savings or investment which pay higher interest than your debt with the highest interest, put a part of your fresh money rather there. |
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Leopold Bloom
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It would make sense to pay the high interest one first, but if you are incurring charges on the small ones they might be costing you more.
see link for more help, phone the Citizens Advice Bureau, the number will be in your local phone directory |
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Iknowsomestuff
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Go with the highest interest one. If you're that far into debt, you might want to call the card companies and tell them about your situation. I did that a few years ago when I was £15,000 in debt. All my card companies reduced the % of interest each month so I could actually pay them back. They preferred that to me claiming bankrupcy where they wouldn't get their money back at all. |
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Kainoa
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Always a good idea to pay off debts with high interest rates. If you pay an amount in excess of the minimum due, they will deduct the excess from the principle owed. This effectively lowers the interest due on subsequent payments. |
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Rarity
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You need to see an IFA - they're free (in the UK) and they can offer you impatial advice on financial matters. Advice from other banks will only get you into more trouble (in my experience, anyway) because they are always looking to make more money out of you. Banks have made me cynical.... Good luck! |
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Guy M
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Well, first of all, so am I, so I know where you're coming from - nice of your dad, but you need to use it wisely. I would say pay off the highest interest one, or use the 1k to take a chunk out of your largest debt. Unless of course you're being threatened with legal action, in which case you should talk to your debtors and agree to limit the amount you owe them and a repayment date (so you don't get nailed by additional charges). Most companies are fine with this if you look like you're making the effort and will pay off a little bit at the moment.
If you're really, really stuck, a good solution might be an Individual Voluntary Arrangement (IVA) - this is an agreement to pay of a portion of your debt over a set time period, through an agency that pays off your debtors for you and then takes money from you as repayment.
To avoid getting into more debt, there are a few tricks. Direct debits on all your bills and regular outgoings should save you money. Also, never just pay off the minimum monthly repayment on credit cards - the interest is horrendous.
Check out the sources for more information... |
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Catwhiskers
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I would pay off the one with the highest interest with that as it will lead to that one getting paid off quicker.
You could also use it to help pay off the one with the least amount remaining to be paid and then you will have one less debt to pay. |
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DemonicaB
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Hi
If you want really good free advice from people in your boat then sign up to the forums at www.moneysavingexpert.com
They will know exactly what you should do and show you how to save more money to help with your debt.
Wishing you the best! |
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babylou1008
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i would pay off the highest intrest rate one first
Secondly, BBC3 have a show called Spendaholics that helps people in a lot of debt curb their spending. You should maybe see if they are still looking for new people for their new series.
If you are not brave enough to go on TV watch the show anyway you may pick up some useful hints and tips.
Best of Luck. |
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enirgo
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You should pay off the 3 or 4, for one simple reason, the less bills you have to look after the less you will worry about them.
If the other debt that you're paying is a credit card always try to pay more than the minimum amount.
Have a look a the 'How to get out of debt seminar'
http://www.fool.com/seminars/sp/index.htm?sid=0001&lid=000&pid=0000
it's American but the rules apply wherever you are. |
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Gaz
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Pay the money of the debt with the highest in tersest rate, it'll save you money in the long run.
It maybe worth looking into getting a consolidation loan to but all your debt in one place and hopefully lower your monthly payments. If you shop around you should be able to get a competitive interest rate that again will save money in the long run. |
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bushraider69
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Do you have many, little debts, or some little ones and a couple of biggies?
If you're struggling with the repayments, and really don't see how your situation i going to get better, then try calling teh Consumer Credit Counselling Service, it's a free number and should be listed somewhere.
If the problem isn't that bad, don't ignore your creditors - speak to them and let them know your situation - they might arrive at an agreement with you, thereby getting them off your back for a while.
Well done for realising that you need to sort it out though - pay off what you can immediately, and then concentrate on the bigger, less managable debts. Good luck. |
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tringyokel
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I assume you are currently paying at least the minimum payments on all your debts. Then logically you should reduce the one with the highest interest.
Having said that, if you have any credit cards with a low rate of interest that ends soon, don't forget to take into account what the rate will go up to.
Also, it may be more psychologically satisfying to to clear one or more small debts even though the rate is not the highest.
More importantly, why are you in debt? When will you be debt-free?
If you don't know the answer to these questions then it is probable that you are just overspending. Your priority should be to sort out a sustainable budget and keep to it. |
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slysimon69
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My advice is to get a credit card with 0% interest for 6 months on it ....and pay off all ya debts
then become a rate tart .......just get a new credit card with 0% for 1st 6 months every 6 months and pay off the previos debt
its the cheapest and best way if u keep on top of it ... |
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helen g
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Sounds like you need to consolodate your loans. Move them all to the one with lowest interest, and then start paying that off. |
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Annie M
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Consolidate all your debts into one low interest loan. |
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♥Lexi♥
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Well u are silly!!!! |
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srracvuee
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I THINK YOUR FIRST THOUGHT SHOULD BE HOW THE HELL DID I GET MYSELF INTO THIS STATE |
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