Extra £1k what to do

pbfhpunk

Hi

I am getting a small amoutn of money and part of it will be paying off one credit card that is currently 0% interest before the interest goes back on. and I'll have £1k left. Question is do I put it on my other 0% credit card (due to end next March) or on my interest paying one then reduce the limit by £1k to start reining that in. The interest charging one is the only one we use for spending so possible we could pay £1k off and then spend it again in a few months.

Hope that makes sense

Thanks

andymc29

Pay it against the interest bearing one. But still keeping trying to pay off the 0% one as quick as you can.

pbfhpunk

thanks

I thought this was probably the way just wanted to get other opinions.

happytails

Yeah chuck it on the interest cc. Then my best advice would be to rein in spending on it or stop altogether if possible.

Depending on how much is on the cards. I'd work out what you can afford to repay on each so the 0% is paid off in time for the end date and you can also pay a big chunk off the interest cc.

For example. If 0% cc was £1000 say til march 2013 and int cc was £1000 also plus interest. If you could afford £200 a month in repayments (that's 8 months, totalling £1600) Id spend the first 3 months reducing the interest card to about £400 then the last 5 months paying your money to the 0% card ensuring you are paying as little interest on that card but also paying the balance on your 0% card before it expires. Does that make sense? meaning you pay less interest on that debt as youve reduced it quicker.

Sarah x