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Repayment order - long term low rate or 0%?
chuffee
Posts: 28 Forumite
in Credit cards
I won't go into all the details but basically I'm a debt free wannabie looking to pay off credit card debt.
Currently I have £900 on a life of balance transfer at 2.3%
and £4000 at 0% until July 2010
I know that normally the only sensible approach is to pay off the highest interest first. But I'm not going to have cleared all the 0% debt before it reverts to a higher interest. I would be looking to transfer it but given the economic forecasts it's not clear that I'll have as many options next July to keep this debt cheap.
So I am thinking it might be better to pay the minimum on the 3% card and focus on getting the larger balance down to something more manageable before next July. (Over the life of the 3% debt, at minimum repayments I would pay £60 interest in total) This way I keep some of the debt on a cheaper deal for longer.
Am I;
a) Being paranoid about the avaliability of credit cards next summer
b) Missing the point
c) Doing the right thing to focus on the bigger debt
Currently I have £900 on a life of balance transfer at 2.3%
and £4000 at 0% until July 2010
I know that normally the only sensible approach is to pay off the highest interest first. But I'm not going to have cleared all the 0% debt before it reverts to a higher interest. I would be looking to transfer it but given the economic forecasts it's not clear that I'll have as many options next July to keep this debt cheap.
So I am thinking it might be better to pay the minimum on the 3% card and focus on getting the larger balance down to something more manageable before next July. (Over the life of the 3% debt, at minimum repayments I would pay £60 interest in total) This way I keep some of the debt on a cheaper deal for longer.
Am I;
a) Being paranoid about the avaliability of credit cards next summer
b) Missing the point
c) Doing the right thing to focus on the bigger debt
0
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