Do I pay off small Direct debit's or start with the one's that are building higher and higher x
2006-08-09 04:48:37 · 6 answers · asked by louise 2 in Business & Finance ➔ Personal Finance
Take a look at what debts are costing you most in terms of interest rates. Pay off the highest interest rate loans etc first to free up more capital to pay off the smaller ones. Some companies may allow you to make penalty free lump sum payments on loans which will reduce the term of the loan. Consolidation loans are okay, but often hard to get if your bank statements show a bad record on overdrafts, bank charges etc. A private family loan is another option you could consider. Sometimes your bank can be pretty helpful if you talk to them before things get out of hand. They would far prefer you to talk to them than ignore the problem and not ask for their help.
2006-08-09 05:05:08 · answer #1 · answered by mistyhorizon2003 2 · 0⤊ 0⤋
Depends on what the direct debits are for - are these for "essential" items, and are your debts secured or unsecured? If your debts are manageable I would pay off the ones that are attracting the most interest first, or perhaps carefully consider a loan (shop around first) to pay off all what you owe - and don't run up more debts. This could free up your finances. If you have debts that are causing you real problems it is well worth contacting the Consumer Credit Counselling Service and working with them to make a manageable debt payment plan. They will work with you and contact creditors, etc. The service is free and I have found them extremely helpful.
2006-08-09 06:14:40 · answer #2 · answered by Angeline S 2 · 0⤊ 0⤋
If you are willing to do it, get a consolidation loan with auto pay on your payday. The loan should be a term loan, meaning that it will be paid off within so many months (like 60 months). It takes time to get out of debt and a lot of patience.
Once you get that consolidated loan, cancelled all credit cards, except for one and ONLY use that for emergency purposes. Also, once a month take out the amount of CASH that you think you are going to use for that month and pay everything with that CASH. Stop using debit cards because it is much harder to keep track on what you have going out. It is the little purchases that kill you because they add up over time.
ALWAYS go over your bank statement. You will be shocked on how much money is going out for trivia things. This will wake you up, trust me and help you eliminate a lot of frivilous spending.
Another good bet is that for any credit cards bill you get, look at the amount of finance charges. Most of your bill is interest charges, for example, if you get a bill for $120.00 and 100 of it, then only 20 of it is going towards actually paying down the debt, I suggest pay $220.00, (an extra 100) dollars, this way you know that $120 goes towards the debt and $100 towards the interest. If you can do it pay $500.00.
Another thing, call the credit card company and negotiate your interest lower. They want your business and tell them another credit card company is offering you a deal and see if they are willing to match it. I've negotiated my interest rate lower by a third. You have the power, you do not have to put up with high interest rate.
Well those are the suggestions I have... good luck.
2006-08-09 05:15:30 · answer #3 · answered by xolodnyj 6 · 1⤊ 0⤋
Enter into a voluntary repayment arrangement with your creditors,it reflects better on your future credit worthiness if you are shown to make regular payments ,even if they are for small amounts,the worst thing is to ignore any debt large or small.
Many credit card companies will give you a repayment schedule and in some cases you can get the amount of interest frozen.
Good luck !
2006-08-09 05:07:11 · answer #4 · answered by any 4 · 0⤊ 0⤋
your choice. you choose an option thats best for you and your circumstances.
See if you can barter with the financial departments of these debts, to reduce your mimimum payments. Or to pay a reduced one-off fee that has a discount saving because you are willing to clear the account. ASAP.
2006-08-09 10:22:49 · answer #5 · answered by lonely as a cloud 6 · 0⤊ 0⤋
i got a low interest loan and paid eveything i owed off in one go. only one bill a month to have to worry about and it gives you something to aim for.
eg my loan was over 5 years so i knew i'd be debt free in 5 years.
so much easier to manage,
2006-08-09 04:53:57 · answer #6 · answered by britbabe 2 · 0⤊ 0⤋
Which department are you looking to crawl out of?
2006-08-09 05:50:47 · answer #7 · answered by Iseethickpeople 2 · 0⤊ 0⤋