Help needed with prioritising debt

RAS

As with anyone else.

What are you paying on charges and interest on the ODs each month?

If it is more than £12, it would be worth removing them or gettig within limit.

Any spare capacity on cards on which you have a low APR and can purchase without penalty, use them to purchase and them pay that amount off the MBNA card.

Do check out the deals in the credit cards section here in case you can get another 0% deal. If so balance transfer off the MBNA card and then pay off as much as possible with the savings.

Tanjawi

Lloyds TSB Balance £657.29 OD got me £9.25 charge in interest

Barclays Balance £648.82 OD got me £4.02 charge in interest

Santander is 0% on purchases too. I don't pay any fees for transferring into it hence why I am inclined to pay it off and transfer more from MBNA into it as any balance in it will be at 0% for the next 10 months.

Difficult to provide an SOA at the mo as i don't have a fixed income. I am self employed and it varies.

By the way RAS, I don't understand when you say "use them to purchase and them pay that amount off the MBNA card"

Please let me know if u need any more info.

RAS

Tanjawi wrote: »

Lloyds TSB Balance £657.29 OD got me £9.25 charge in interest = 18.%

Barclays Balance £648.82 OD got me £4.02 charge in interest = 14.7%

By the way RAS, I don't understand when you say "use them to purchase and them pay that amount off the MBNA card"

Both interest rates are "ish".

If you cannot do a balance transfer to a card and are not penalised for purchases try this.

If you would pay less on the M&S card than on MBNA, then buy somehting that you would not normally buy on the credit card (say food) on the M&S card.

Then immediately pay that amount off the MBNA card. Your amount of debt is the same but you are now paying say 16% instead of 31.9%, which reduces your interest payments.

Oneday77

It should be pointed that the spend ona lower APR and pay the 'original' spend to the highest APR is a method that you have to be very careful with and show restraint. If you do this and don't reduce the higher APR it will only increase the issues.

Tanjawi

Thanks for your input. My aim is not to use any of the credit cards for purchasing but to clear them instead. Ultimate goal would be to keep 1 or 2 credit cards max with no more than £2000 limit combined.

The immediate goal is to clear them and bring the balances to 0 asap.