Stuck in a vicious credit card circle!

[Deleted User]

jason1231972 wrote: »

there's the tried and tested method of snowballing...throwing the most money (more than the minimum payment) at the smallest debt first (whilst always keeping up with minimum payments on other cards!), then moving onto the second-smallest debt, and so on.

Would it not make numerical sense to pay the most off the HIGHEST rate card first?

electrobix99

You can also get away with paying no interest on some of your credit card debt if you paid extra then spent on the card for things you need.

i.e send £40 to credit card - few days later spend £40 on credit card. There should be a period where you are not charged interest on the card so doing that regulary will help keep the interest payments down.

I would also see if you can set the direct debits for the cards at a fixed amount rather than the minimum. That way as the debt reduces you are not making reduced payments as well which will drag the debt out even longer.

jason1231972

billbennett wrote: »

Would it not make numerical sense to pay the most off the HIGHEST rate card first?

As per post #9, her smallest debt (probably) does charge the highest in interest.

redpete

electrobix99 wrote: »

i.e send £40 to credit card - few days later spend £40 on credit card. There should be a period where you are not charged interest on the card so doing that regulary will help keep the interest payments down.

I must be missing something because I don't see the point of that at all. You spend real money by transferring it to the CC account, then buy what ever you want some time later. So you spend money earlier than you would by not using the CC at all.