Clarification Required on cc shuffle

lala9

I am right in thinking 'am i not'? that regardless of the balance on your credit cards you should throw all your available cash at the most expensive rate card?

For instance 3 cards:

14% 5000k balance
17% 2000k balance
21% 6000k balance

So the 6000k card should be dealt with first followed by the 2k and then the 5k.

Is this correct?

CLAPTON

yes, that will ensure you pay the debts off most quickly and pay the least interest
however, credit files now show whether or not you pay the minimum each month so it may be wise to pay just a little more than the minimum on the other cards

lala9

Thanks for that Clapton, just sanity checking my actions :-) Interesting about the cra's now reporting on whether you pay the minimum payment, there is no escape is there. However, I do pay a little over the odds to the remaining cc's so should be ok there!

speedbird1973

It's exactly the right adivice. Sometimes it could be worth paying off a higher rate card if you think you'll get a 0% deal on the empty card. It could be a gamble, but it could save money. Likewise, although it doesn't apply in your case, if you have a smallish balance on a lower rate card. Getting rid of the balance on a card can spur you on.

That said the above advice is spot on.