Which card should I clear first?

258chuckie

Hi

I have now split my credit card debt between two cards, one at 0% and the other at standard rates. If I have the chance to service one at minimum payment and overpay to clear the other, which one should I go for?

My head says, clear the 0% one. Am I right?

Thanks
Chuckie

The_Boss

258chuckie wrote: »

Hi

I have now split my credit card debt between two cards, one at 0% and the other at standard rates. If I have the chance to service one at minimum payment and overpay to clear the other, which one should I go for?

My head says, clear the 0% one. Am I right?

Thanks
Chuckie

Nope, clear the other first. The standard one attracts a standard rate of interest to the outstanding balance whereas the 0% does not add interest.

How long left on the 0% promotion and what does it cover?

vuvuzela

258chuckie wrote: »

Hi

I have now split my credit card debt between two cards, one at 0% and the other at standard rates. If I have the chance to service one at minimum payment and overpay to clear the other, which one should I go for?

My head says, clear the 0% one. Am I right?

Thanks
Chuckie

Nope. Clear the one you are paying interest on. This way, clearly you will pay less interest...

The_Boss

Is there an echo in here?

258chuckie

Thank you very much people. The promotion runs to year end, but I have no intention of making any purchases on either until I'm in a position to clear full balance each month.

The_Boss

258chuckie wrote: »

Thank you very much people. The promotion runs to year end, but I have no intention of making any purchases on either until I'm in a position to clear full balance each month.

Make a note of when it expires as you could then apply for another card and transfer the outstanding balance onto that at a promotional rate.

If you only have two credit cards then do not close the 'standard' account when you have cleared the balance. If you think it will take longer than a few months to clear the standard card it is probably seeing if you can get a third credit card with a promo offer.