What to pay first?

MikeAUK

Is it better to pay off an overdraft at 20% interest per annum or a cc at 1.89% per month?

pinkneonmartini

which has the higher balance? a £100 overdraft at 20% is going to be alot easier to pay off than a £5k cc at 1.89%pcm (which is 23%p.a anyway)

mrsb83_2

20% pa is equal to 1.53% monthly, so if you're trying to pay the least interest pay the CC first.

Brenster

Financially speaking listen to the above advise, however if one of the debts is relatively small, i always like to Clear a debt, rather than pay a bit off 2 separate debts. Even though it may not make sense in terms of interest, I tend to think the little additional interest is costs is worth paying to get rid of one debt completely.