Which is better to pay off first?

npower2003

I have a life of balance credit card with a balance on it and a 0% till October with a balance on it. Which is better to pay off first? bearing in mind I can't do either very quickly!!

Thanks in advance

Tixy

Depends
What is the rate of the LOB card? what will the rate be on the 0% card the 0% finishes?
How much can you afford to pay between now and October above the amount of the minimum payments?

npower2003

Hi

LOB is 5.8% and 0% would revert to 15.95% as it stands. Can find at least an extra £50 per month and hoping a bit more.

Thanks again

ironlady2022

I have worked it out for you

Take 15.95% divided by 12 months = 1.33%
5.8% (LOB interest rate) divide by 1.33% = 4.36 months

You 0% interest runs out in October so add the 4.36 months onto this figure and if you cannot pay it by say March 2012, not worth transferring.