Store or Credit Card?

shoe*diva79 · 17 December 2014 at 5:16PM

2 of my debts are with Next and Nationwide CC.

Next account has a balance of £918 to pay and my minimum payment is around £92 per month. I have been paying £100 a month. Interest is circa £20 a month.

Nationwide CC balance is £5k. It was on 0% but has now switched and this month I paid £77 interest on £5k balance. Next minimum payment is £123 with estimated interest of £77ish.

Now, I will have £400 available for these 2 debts as of February (paying off a different CC in full next month whose interest is a eye watering 49%)

Do I pay the minimum on the CC so I can get the Next card paid off in 3-4 months or shall I continue to pay £100 on it and chuck £300 at the CC so that the balance comes down quicker the interest wont be quite as much each month?

rockm87 · 17 December 2014 at 5:21PM

Store cards are usually horrendous interest-wise. So I would up the payment on that and get it shifted!

shoe*diva79 · 17 December 2014 at 5:30PM

I think its 24.9% and the CC is 19.9% so what I am thinking is I am going to be paying over £70 a month in interest for at least 3-4 months when I could pay a lot less by paying the CC quicker and the Next acc over the next 8 months which would cost around £160 in interest.

bargainbetty · 17 December 2014 at 5:49PM

If the store card is at a higher rate of interest pay that off first as it will cost you more in the long run.

GettingOrganised · 17 December 2014 at 9:41PM

Hi, I second bargainbetty - pay off the highest interest debt first. You have the added bonus that this is the lowest total, so you can get rid of a creditor quicker.

Good luck

Store or Credit Card?

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