Advice on moving around debts.......

Littlemiss-lotsofdebt

Hiya everyone

I'm looking for some advice on the quickest way to pay off my debts, as I do tend to get a little fuddled by it all!

I currently owe Barclaycard £5600, now some of that is at 12.9% but I know that at least £2000 is at 21.9%, as I stupidly withdraw £2k a few years ago to buy a car (I know, I know).

I also owe Virgin £2000 at 13.9%, and have been paying the minimum by DD each month.

I have £2500 at 0% with BOS, due to end January 07.

And, an overdraft, limit of £1960, usually well into it by payday of at least £1800.

I was thinking of paying extra to Virgin, and clearing that first as it's the smallest amount, and at the same time, reducing my OD by £30-50 a month. But now I'm starting to think I should be chucking everything at my Barclaycard.....................

What do you advise folks?

lynzpower

Snowballing works by paying off the highest APR first. So I would focus on getting the 2k paid off that you took with b/card first as its the highest APR.

HAve you applied for a Low LOB card, in order to shift some of these higher ones over?

Devo

Try this calculator which should help you prioritise your debts: Clicky

Littlemiss-lotsofdebt

I thought that would be what you recommended. Pretty obvious really!!!

I applied for the BOS card in March, and finally got everything sorted in May. I'm due to make my first payment next week to them and am paying the minimum which is £50.00. I did think about applying for another 0% card, but would it be too soon as I only applied for one in March?

spud30

Just bear in mind that CC companies distribute the money you back back in very devious ways.

If you balance transfer at 0%, then withdraw some money at 21%, the money you pay back will pay off the 0% BT first, all the time your cash withdrawal is accumulating 21% interest.

Only when you have repaid the BT will you start to repay the withdrawal plus the interest.

CLAPTON

what the APR of your overdraft?

Littlemiss-lotsofdebt

CLAPTON wrote:

what the APR of your overdraft?

I'm ashamed to say I don't actually know. I've had it for so long I can't even find the paperwork, so I need to give them a call I expect. Their website indicates the typical rate for my account is 15.6%, and I pay £15.00 charges and £15.00 payment protection - can I cancel this?

CLAPTON

personally i dont think payment protection is worth it as it rarely ever pays out and i would cancel it....do you have payment protection on the CC? again i dont see it worth paying.

what is the £15 charges for ? is that an account service charge or a late payment type penalty?

Littlemiss-lotsofdebt

I don't have protection on any of my cards, so will speak to the bank re: cancelling it on the overdraft.

On my online statement, it states the £15.00 as interest if that helps!