Which to pay?

Tino_2

Hi all,

I'm after a quick bit of advice regarding my credit cards. I have an Egg card with a balance of apx £1600 and an interest rate of 7.9% which I am currently paying off at £40 a month. I also have an IF credit card with a balance of £800 and an interest rate of 4.9% which I am currently paying off at the minimum amount, roughly £16 a month at the moment.

I am shortly going to have a lump sum of £300 and an extra £40 a month to put into paying these off, so my question is how is that money best used? I know the rule of thumb is pay off the most expensive debt first, but do I want to put all of my money into the egg card? That would leave me £1300 and paying £80 a month, but still only the minimum amount getting paid off the IF card.

Is this the best option money wise?

Thanks

CLAPTON

yes pay the money off the card with the highest APR (EGG in this case) and only pay the minimum on the lower APR card.
its not really a rule of thumb to pay the max off the highest APR, its the way to pay the minimum interest and to clear the debts in the least time at least overall cost

Tino_2

Ok, thanks for the help!