What to do with debts??

Chemical_Grrl

Hi

I wanted to get your opinion as to what I should do. I've listed my debts below with the most expensive debt first.

£3,340 with Lloyds tsb (credit card, rate 23.3%)

£4,422 with Bank of Scotland (credit card, rate 15.4%)

£1,579 with Barclaycard (credit card, rate 11.90%)

I am due to receive a bonus in February so will have a lump sum to pay off my debts I should be receiving around £4000 which I intend to use to pay off the Lloyds card and then the Bank of Scotland card. Once I have done this I was thinking of appling for either a low life of balance or a 0% APR offer. I just wanted to get some other people's opinions, what would you do in this situation?

Thanks

ironlady2022

If your credit file is intact then yes I would agree you pay off the Lloyds one first as it is the most expensive. Then apply for the balance transfer to see if you are
a) elligable for the 0% promotional credit card
b) what the limit is.

You might be able to lump the BOS and the Barclaycard together and keep the remainder: £660 for a rainy day. This all deopendant on income to debt ratio.

izools

Your other option is pay off the Lloyds TSB Card first, and once this has cleared, and once the subsequent statement has been produced (the one with a little trailing interest) call them up and ask if they have any repeat offers.

Most credit card companies are happy to give repeat promotional (0% or low rate) offers to good existing customers. You might get one to clear your BOS card.

This could save having to apply elsewhere; if LTSB give you a promotion you can use your (then empty) Bank of Scotland card to switch the LTSB balance back when their repeat promotion ends.

This is all assuming you're going to be offered repeat promotions by either bank, of course.

Good luck!