Debt repayment choices
Posted in Debt Strategies, on Monday, November 27th, 2006The standard advice for repaying debt is to service the most expensive debt first, so reducing your interest charges. However, sometimes it’s a bit more complicated than that. What if you owe money to friends or family? Should they come before debts to a financial institution? Millionaire Artist ponders on this when deciding how best to use a ’spare’ thousand dollars.
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July 12th, 2007 at 11:14 am
With many people facing serious debt problems I think that is best to pay off the debtors who can persue you legally as a priority. I know only too wel the bad feelings which owing money to family can cause but in my case, paying a little and often to a family member while paying most to the bigger debtors proved my best course of action for me.
July 12th, 2007 at 3:35 pm
I agree with Tony. Your family will understand that other debts take priority, especially ones which pose serious risks like losing your home or being forced into insolvency.
Martin, Debt Sorter
January 16th, 2008 at 4:02 pm
its always hard knowing which creditors to pay but some are easier than others to deal with. if you have debts with actual solicitors, then i would recommend paying these to avoid a ccj, collectors are normally much better.
March 13th, 2008 at 11:52 am
Being in the type of business where I have to follow up a lot of people who owe me debts I got free access to a piece of software called DCS over at chapterzero.co.uk. It’s more for a business to help manage debts that are owed but it might come in use for people wanting to manage debts in general.