Which card to pay off first?
Options
RedSoleShoes
Posts: 456 Forumite
in Credit cards
I keep reading that you should always pay the highest insterest rate card first but what if that has the lowest balance?
For example, if you owe £3000 on a 8% card and £1500 on a 10% card, is it still worth concentrating on putting as much as possible onto the £1500 balance and just paying the minimum on the £3000, when the monthly interest is greater on the larger balance?
Hope that makes sense!
Thanks
For example, if you owe £3000 on a 8% card and £1500 on a 10% card, is it still worth concentrating on putting as much as possible onto the £1500 balance and just paying the minimum on the £3000, when the monthly interest is greater on the larger balance?
Hope that makes sense!
Thanks
0
Comments

LilyDeTilly wrote: »I keep reading that you should always pay the highest insterest rate card first but what if that has the lowest balance?
For example, if you owe £3000 on a 8% card and £1500 on a 10% card, is it still worth concentrating on putting as much as possible onto the £1500 balance and just paying the minimum on the £3000, when the monthly interest is greater on the larger balance?
Hope that makes sense!
Thanks
Highest interest first. Balance is irrelevant.0 
Have a look at the Snowball Calculator:happylove DD July 2011:happyloveAug 13 [STRIKE]£4235.19[/STRIKE]:eek: £2550.00 :cool:0

For example, if you owe £3000 on a 8% card and £1500 on a 10% card, is it still worth concentrating on putting as much as possible onto the £1500 balance and just paying the minimum on the £3000, when the monthly interest is greater on the larger balance?
Or to put it another way, £1500 on a 10% card and £1500 on an 8% card and ANOTHER £1500 on an 8% card.
Now which will you pay off first?
As post 2 said, balance is irrelevant. Highest interest first, every time.0
This discussion has been closed.
Categories
 All Categories
 343.8K Banking & Borrowing
 250.3K Reduce Debt & Boost Income
 450K Spending & Discounts
 235.9K Work, Benefits & Business
 609K Mortgages, Homes & Bills
 173.4K Life & Family
 248.5K Travel & Transport
 1.5M Hobbies & Leisure
 15.9K Discuss & Feedback
 15.1K Coronavirus Support Boards