new government ruling on credit card debts

dirtyepic

Hi,

I was just in the processing of updating my snowball, try to do it weekly to keep me on track.

Will my snowball and debt free day be effected by the new ruling that the repayments should clear the HIGHEST interest rate debt first. I am querying this because my debt is with Barclaycard and they have started this already?

I am afraid I am unable to even start to think about this effect on my payment but I kind of think that maybe it should have an effect??!!!

Any help or advice would be most gratefully appreciated.

Kind regards

T
aka dirtyepic

dzug1

Yes you will repay the debt quicker - as long as you don't do anything silly like reducing your payments or spending more.

Consumerist

If your card debt is from cash advances as well as purchases then your debt should be repaid more quickly. If the entire debt is for purchases only, then the new rule will make no difference.

dirtyepic

Hi, thanks for your replies. The card is never used. It's has a small amount of purchases on the card but the vast majority owed is balance transfer.

Not intending to spend on a credit for a long long time!

I don't suppose anyone would know how to amend the snowball?

Thanks again.

T
Aka dirtyepic

Consumerist

dirtyepic wrote: »

I don't suppose anyone would know how to amend the snowball?

Snowballing, as I understand it, is paying off the most expensive debt from different cards or loans. If your card is the only debt you have then snowballing is not possible.

Do you have other debt ?

dirtyepic

Consumerist wrote: »

Snowballing, as I understand it, is paying off the most expensive debt from different cards or loans. If your card is the only debt you have then snowballing is not possible.

Do you have other debt ?

I have two credit cards both with around 10 months and 11 months 0% balance transfer left on them

T

Consumerist

OK. If I understand you correctly, the plan should be to focus payments on the card holding the most expensive purchases since the BTs are both still at 0%. Make only minimum payments on the other card until the situation changes.