Confused about credit card payments!

pbfhpunk

Ok I have 2 credit cards

one Tesco 12month 0% ends in jan or feb 1500 limit 1353.97 balance
one MBNA 12month 0% ends in feb 2500 limit 2417.26 balancce

Ok at the end of the 0% do I have to pay the last 12month interest as I didn't pay the blance transfers off? I've applied for other 0% bt cards to transfer the balance but been refused.

In the future what I wasnt to do is pay them both off, obviously, and then just use the tesco one as it gives us clubcard points, also maybe keep the MBNA one for emergencies.

I currently pay the minimum payment each month as it's been a not so good year!!

Basically I've done the snowball payment thing and it says that if I split £100 between them which is probably what I can afford then I'll pay free of them both by May 2009. Really I just need to know is it better to pay of the higher amount first or the lowest one so I'll be down to one credit card earlier but it's the credit card that I'm likely to use, or shal I put as much to the higher one as I can to be rid of that one quicker.!! I hope that makes sense! I get the feeling it doesn't!

Thanks

Helen

whatatwit

What is the interest rate going to be when the 0% finishes.

Ideally you should make the maximum payments on the highest interest one.

justmarried06

Hi there - when the 0% period ends on both cards it means that they will revert to their standard rate but you won't have to pay that rate on the last 12 months you've held them.

What I would do is to see which one has the higher standard rate and concentrate on making higher payments on that one as the other card will be costing you less in interest. However, if they both have the same standard rate due to apply then go for the MBNA with the higher balance.

Hope this helps a bit, good luck with getting them down!

JM xx

pbfhpunk

Tesco will be 16.9
MBNA will be 15.9

I've had a rebate on my council tax so will be saving £100 for the next 3 months that I could put on as extra but to be honest I need that money to get my overdraft sorted again! Got a refund but again if I keep it in my bank long enough then I can get my bank balance healthy which I'm more concerned about at the moment really
Thanks

whatatwit

Ok, so Tesco it is who gets more money.

Also as it is the smaller of the two cards, it will be paid off quicker and then you can use that money on the MBNA one.

Sounds great on paper, real life is another matter.

What is the rate on your overdraft?

pbfhpunk

I have no clue! But I keep upping it for a couple of months at a time, so at the moment it's £700 due to having to pay 250 excess for a car insurance claim but that comes off at the end of the year so not sure what it'll go down to, I lose track!

Helen

Serialdieter

Hi Helen

You need to find out what the od rate is, if it's lower then you'd be better of od an get rid of tesco first.

If you haven't already done so, get a copy of your credit file to check if there are any other bits on there that are stopping you getting a lower rate card. I'm thinking if you can move to a low lob card it would all help.

Jx