Bad Credit Credit Cards - Help with understanding payments?!

jennycroall

Hi everyone

I have just applied for a bad credit card as my credit is poor due to being silly when I was younger. I wish to use it to buy everyday items then pay off each month to build the credit back up however I am confused by the tip to pay the minimum and then use the extra to pay off other debts. This seems to make sense to me but it also means my new credit card is building debt too so I would be in the same boat by the end of the 0% period no?

Can anyone shed some light to make it a bit clearer for me??

Thanks!

[Deleted User]

Bascially, the idea is to throw as much money as you can at the debt that costs you the most, while making minimums on all others. So generally very sound advice.

But you've spotted the potential glitch, which is what happens if one of the debts is set to increase at a known point. Basically you need to do the maths on it, month by month, to see which is the best option. It depends on how quickly you can pay off the debts and what the rates are. Generally, though, targeting the highest immediate rate is the right route.

Do you want to post what rates, balances and deals you have to see if someone (not me, obviously, because I'm lazy) can guide you in the right direction?