Which to choose...

newmoneysaver_2

Hey guys,

Looking to you for help in choosing which to pay first.

I have an egg card - 0% until Oct, balance £1984.75 and a barclaycard - 6.9% LOB, balance £2738.62.

I have £500 to pay off each month, which do I pay first?

I hope that when the 0% rate ends in Oct I will be able to move this money to my empty Abbey card (always over me v.low rates for b/transfers - usually 1.9% or 2.9%). I have entered these figures into the snowball calculator and it reccomended paying egg of first. What would you do?...

lynzpower

If you paid 500 pcm off the egg card it would be gone by the time it expires in October. So I personally would do this.

dudleyboy

Hi there.

I'd go with Egg first as well because if you repay £500 towards it every month for the next 4 months (Jul, Aug, Sept, Oct) you will have cleared it before your 0% runs out! This will mean:

you're one more whole debt down (a huge motivation and acheivement!)

you won't have to transfer to yet another card (saving you hassel and a possible transfer fee!)

your LOB on the Barclaycard is pretty darn low... far lower than the 15+% APR charged by Egg and other companies... and will allow you to focus as much money as you can on that each month until cleared as well.

It's Comet sense, i tell thee.

DB

CLAPTON

you could of course pay the minimum amount on the egg card each month and put the rest of the 500 in a saving a/c
then withdraw it and clear the egg card when the 0% runs out....you might save £9-£10