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Who to pay first.

WiZeR
WiZeR Posts: 14 Forumite
Part of the Furniture First Post Combo Breaker
Hi Guys

I'm in a similar situation to the poster in the other thread. Ran into financial problems and 4 credit card companies are hassling me for payments. I've adjusted my life and started to get on top of it and am making the minimum payments. However, I went for about 4months making payments to only 2 of the CC's per month. i.e all 4 have served missed payment notices on me.

Anyway. I've just sold my car and I have a couple of grand to play with. Should I divide it between the four companies or choose the lowest balance and sink it into that with the hope of getting rid of that card before xmas ?

Your views appreciated.

Comments

  • cifpower
    cifpower Posts: 6,502 Forumite
    Highest APR first
  • Moggles_2
    Moggles_2 Posts: 6,097 Forumite
    Which of your four cards charges the highest interest rate?

    I would make at least the minimum monthly payment to each credit card and use the balance of the money to pay off the most expensive one.

    This would reduce the interest you pay and you'll be building a better credit history in the process. That, in turn, reduces the risk that your providers will raise your interest rates.
    People who don't know their rights, don't actually have those rights.
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