Repayment Dilemma

[balster]

I'm about to come into some money(4k) and I have 2 debts which I would like to do something about as they are both CCJ's. Outstanding amounts of 2.8k and 9k(8% apr), originally 5.2k & 24k. I have been paying toward them every month for a while. They are both going to drop off my CR this year. My heart says pay off the 2.8k one to get rid of it, one les CCJ to worry about too, then I'm only making one payment a month and put the rest towards the bigger one.

My head says put the 4k towards the 9k one and pay less interest and pay it off sooner.

 

Thoughts? Espicially from anyone who has been in a similr boat.

 

 

Cheers

[citizenB]

If you were to go with your first option - Pay off the smaller CCJ and get rid of that totally - you will then have £1K to put toward the larger CCJ - you could also increase the monthly payment to include the money you had been paying off the smaller account - which would reduce the interest and settle the 2nd CCJ quicker.

!

[balster]

As always, sound advice provided.

[citizenB]

[Nick Pearson]

I'm about to come into some money(4k) and I have 2 debts which I would like to do something about as they are both CCJ's. Outstanding amounts of 2.8k and 9k(8% apr), originally 5.2k & 24k. I have been paying toward them every month for a while. They are both going to drop off my CR this year. My heart says pay off the 2.8k one to get rid of it, one les CCJ to worry about too, then I'm only making one payment a month and put the rest towards the bigger one.

My head says put the 4k towards the 9k one and pay less interest and pay it off sooner.

 

Thoughts? Espicially from anyone who has been in a similr boat.

 

 

Cheers

 

Personally Id consider making them a both a full and final settlement offer of £1k and £3k respectively. Its a matter of judgment if you start lower but in my experience if you start less than you can afford and then go up to your maximum they are less likely to beleive you havent got more if they push you.