The joys of student credit card debt

dontlikedebt

Hi All,

First post, so go easy on me! I'm looking for some advice about the train-wreck that is my finances after university. Concisely, I have £6000 on an (interest-bearing) egg card, which is costing the Earth. I'm paying minimum payments (~£120/month) which I know is bad, but is all I can afford at the moment. In about 4 months time, I could up this to ~£150/month.

I decided to take some action now, so applied for a RBS Card (9 months 0% on balance xfers), but got approved for only £1700 :mad:

My thinking is, this can't all be bad - I can xfer £1700 over from egg and have that as interest-free. I'll accrue less interest on egg, but have to make two payments instead of one (kind of the opposite of consolidation :rolleyes:). I don't want to risk applying for another card in case I'm already stretching me credit status, esp with one application made recently.

So here's the issue. If I can possibly afford to pay more, I will, but where should the money go? To pay off egg sooner (lowering the high interest & monthly payments) or RBS, to clear the balance xfer quicker? My gut feeling is the former, making in-roads with egg, but I'd really like some advice.

Thanks guys,

David

Astaroth

See, theres a reason your at uni

It is certainly wise to reduce the one incuring costs faster than the one that incures no cost to reduce the interest that you have to pay.