What's the best move to make next?

RhiRhiMajic

Ok, so I've been living away from home for a year and ran into a fair bit of debt on two credit cards. I'm home now with two part time jobs so I can afford to start paying them off properly (or at least better than I was). I'm thinking of about £50 per month minimum for each card as opposed to the minimum payment, depending on how much overtime I can grab. I've run into some trouble with the Egg card two months in a row where the interest was applied before my payment had time to go through so I went into arrears even though I'd already made the payment to cover it, resulting in nice big charges and it's probably sent my credit score into the red. I repaid the arrears straight away though, if that makes a difference.

What I want to know is what is the best move to make- is there a certain card out at the moment which would allow me to transfer the balance of both cards making the interest cheaper, or would I be better off paying off each card seperately? Or something else entirely? I really don't have a clue!

Here's the details of each card-
Paypal credit card, 12.9% APR, minimum payment of 5%. Current balance of £1335.04
Egg Money credit card, 16.9% APR, minimum payment of 2%. Current balance of £474.24

Thanks for any help guys and girls

jonesMUFCforever

Snowball - meaning you make the most payments each month on the highest charging card in your case Egg and minimum payments on the other one.
I assume you no longer use these cards?

CannyJock

There are lots of them, but you're not guaranteed to be accepted or that you'll get the credit limit you're looking for. Try here for a full list of them. Top pick is the Virgin money card, but be aware they will most likely hike your interest rate up as soon as your 0% promotional period ends. £1,810 at only £ 50 per month will take more than the promotional 16 months to repay. Be prepared to try and move the balance again before your 0% period expires.

Incurring charges won't affect your credit score. Missing payments will, although a single missed payment won't make much difference by all accounts.

Once you transfer the balance, close the other cards (wouldn't normally advise closing Egg Money as a stoozers friend, but close it if you're not a stoozer).

Oh yeah, and make sure you're on the electoral register. Other advice would be to setup a direct debit for the minimum payment and make additional payments as finances allow.