What's the best way to pay off "petty debt"?

MrsKrepsly

I have credit with 3 different companies all around £400 each. It's petty money I know, but as I'm no longer working (temporary) I'm finding it difficult to pay off any significant amount and I don't want to damage my credit rating by trying to negotiate with them, I just want to pay it.

I have around £20 a week free to put directly onto debt. Would it be better to put the £20 directly onto one debt every week to see it paid off sooner (whilst maintaining minimum payments on the others) or pay something like £5 a week on each to see them all come down together (but slowly).

2 are credit cards (Capital One, 34% apr and Natwest, 17% APR) and one is Argos Store Card with an apr of 29%.

My instict tells me to pay off Capital One first?

[Deleted User]

Cap 1, Argos, then Natwest. Minimum payments on the last two, as much as you can afford on the Cap 1. That will pay it off quickest and at least cost.

dbmabz

Or you you could try and transfer the Cap1 and/or Argos balances to the NatWest card.

You would have to pay a balance transfer fee of around 3% but you would then be paying interest at 17% rather than 34% or 29%.

You could even ask Natwest if there is any balance transfer deal they can do for you as an existing customer. No harm in asking

Diaaaz

Natwest don't charge fees on normal rate balance transfers, but would on any special rate. But you might not be able to transfer the argos balance.

chattychappy

Diaaaz wrote: »

Natwest don't charge fees on normal rate balance transfers,

Really... I'd never noticed that.

MrsKrepsly

Unfortunately my Natwest card only has a limit of £500 and already has £350 on it.

I'm going to concentrate on paying off the capital one card as it's the highest interest and since I've received my progress card with an apr of 29% (rather than 34%) I'd rather get it paid off and use the progress card in future instead.