Author Topic: What should I pay off first  (Read 1572 times)

What should I pay off first
« on: Jan 23, 2011, 06:50:20 PM »
Hi all

New to the forum.

Just want to get your thoughts on which credit card to clear first. I have 3 credit cards and debating on the order i should clear these cards. Some people say the one with the highest % rate and others say the one with the lowest balance.
The balance and intrest rate on the cards is:
Card 1 - £5196 30.9%
Card 2 - £2312 29.9%
Card 3 - £508 19.9%

Any thoughts
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sjp17

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Re: What should I pay off first
« Reply #1 on: Jan 24, 2011, 09:38:37 PM »
Why dont you transfer some of these cards to a 0% Deal , i think id get rid of the 508 one first then snowball the payments onto the next card , remember the golden rule , cut up the cards and dont use them

James Falla

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Re: What should I pay off first
« Reply #2 on: Jan 25, 2011, 12:52:41 PM »
Good advice sjp17
 
I would also say that the best strategy is to pay of the card with the highest interest rate first. That way, you are always going to minimise the total interest that is charged and pay the debt off faster.
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AshleyPark

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Re: What should I pay off first
« Reply #3 on: Jan 28, 2011, 10:07:08 AM »
You would be best to look at settling the highest interest card 1st  as James mentioned and as SJP says why not look for a 0% APR card to switch to, Although this is not as easy as it was in the past!!!!
 
I do seem to remember an article about a provider offering the longest ever 0% interest period but wouldn't like to speculate on the requirements!
 
Lee
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James Falla

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Re: What should I pay off first
« Reply #4 on: Jan 31, 2011, 07:03:04 PM »
I think the lender you are thinking of is Barclaycard Lee. At the beginning of Januaray they introduced a card for new customers with a 0% balance transfer rate for 17 months Certainly worth investigating DDD particularly if you credit rating is good.
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AshleyPark

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Re: What should I pay off first
« Reply #5 on: Feb 01, 2011, 12:24:40 PM »
Thats the one! ;)
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Re: What should I pay off first
« Reply #6 on: Feb 01, 2011, 11:05:09 PM »
Thanks for the advice guys, much appreciated.


The £508 card will be gone next month, so thats one down.


Looking into a balance transfer on a 0% credit card - which will be cut up straight away, if I get accepted.
Unfortunately not eligible for the Barclaycard deal, alreadygot one.
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James Falla

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Re: What should I pay off first
« Reply #7 on: Feb 02, 2011, 06:33:51 PM »
Good luck with it DDD. Let us know how you get on
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JohnSmith2011

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Re: What should I pay off first
« Reply #8 on: Feb 05, 2011, 04:54:21 PM »
i think you would be best off splitting what availible cash you have between the 3 of them as a percentage oft the amount you owe.