Which to pay off first?

jackyboydnb

Hi there,

Basically i have the following debits to my name

Lloyds Duo Credit Card 2407.00 (15.9%)
American Express Credit Card 987.00 (19.9%)
Barclay Card 2623.00 (0% balance transfer untill Feb11 then 18.7% i think)
Overdraft on Natwest Current Account 926.00 (17.8%)

Now i understand i should pay more than the minimum on all cards, but should i pay more off on one than another?

I have about £1300 spare cash at the moment, so i would say i should wipe the AA card then 313 off the lloyds. Or do i take a larger lump off the lloyd's card first?

Any help would be greatly appreciated. My main aim is to be debit free by the end of Feb 2011 but just like to know the best order to pay things off.

Thanks

Horace

Pay off the card with the largest amount of interest first..it may help to post an SOA (statement of affairs) so we know what's coming in and what's going out and will be able to advise better on where to cut down and free up more money to chuck at your debts. https://www.makesenseofcards.com/soacalc.html follow the instructions on there to copy and paste it here.

Tixy

Hi

The snowball calculator may help www.whatsthecost.com it will show which order to pay things off and how much interest you can save by doing it in the most cost effective order.

However generally you should pay the minimum off all debts except the most expensive and then pay everything else you can afford off your most expensive debt.

So def clear them amex card first, then your overdraft. If you are planning to be debt free before the barclaycard starts charging then thats the one to pay last.

the snowball will also help you work out how much you need to pay each mont to be debt free by Feb.

jackyboydnb

Ok thanks for help will look at those two calcuators.

Much appreciated Tixy and Horace

jonjamie1970

Agreed, clear the AE first, then put the rest to the Barclaycard, check the APR first.