Credit Card Payment band re-organisation advice

whatsonjack

Hi guys

I just posted this on the DFW forum but in hindsight it may be better here

Heres a list of my credit card debt

Card Orange Marbles
Balance 3700
Min Payment 73
Interest Rate £2K@6.1 till oct £1.7K@16.9
Limit 9500

Card Barclaycard Plat
Balance 1008
Min Payment 22
Interest Rate 15.5
Limit 1100 (reduced after I paid 2k off!!!)

Card Amex
Balance 1166
Min Payment 30
Interest Rate 1.6 per month (19.2?? pa)
Limit 1400

Card HSBC
Balance 4618
Min Payment 115
Interest Rate 18.9
Limit 6100


Right, this month I've got £2100 to throw at this but I'm not sure what to do with it - any help would be much appreciated. eg Am I better paying off (almost) the smaller ones first or going for the bigger ones??

Afterwards, any advice on a shuffle round to save me money

Thanks in advance

Whatsonjack

CLAPTON

basically pay as much as possible off the highest APR debt
so pay the minimum on each debt except ...amex which seems to have the highest APR ... so pay pay that off completely ... then pay as much as possible on HSBC

also consider trying for 0% BT cards to reduce the high APRs you're paying...

whatsonjack

Thanks for the advice:beer:

Staciep88

I agree with what Clapton has said, get those high interest ones down first but don't forget about the smaller ones - you still need to pay over the minimum payments on those also to make sure the interest doesnt build up too much on them either. Again, look into a 0% balance transfer card

NickX

Clapton is spot on.

Pay as much as you possibly can to the highest APR debts, and the minimum on the others and work it down that way.

Also good advice to look into getting transferred to a nice new 0% card.

Richard019

The Amex one I think is nearer 21% APR.

On the face of it your paying order is:

Amex
HSBC
Barclays
Orange - although some of the debt is higher than the Barclays card unless I'm mistaken you'd be paying the lower rate amount off first (I only know of Nationwide working the other way round)

The only question mark on that is how long it will take you to repay the rest after your promotional rate ends in October.

Have you tried to get a new card for balance transferring some of it? If you've got over £2k towards it this month then you've either been saving or you're on a decent wage. Using that and a BT from a good credit limit giver (Virgin I think is the best deal with one) you could probably pay off the Amex and Barclaycard with a large chunk (if not all) of the HSBC stowed away instantly. That would leave you just paying off what is until October your cheapest debt (plus a nominal amount towards the Virgin crd).