Closing active CC accounts

connormill

I currently have 2 accounts with Cap1, the classic and a progress card. I also have 1 with aqua and one with granite.

Recently I changed jobs and am now making a lot less money. all of these cards are close to (but not over) the limit as I have been using them more often.

My plan was to close all accounts and set up DD's with all of them for a small payment of around £50 each per month on / just after payday. this way I can ensure they are getting paid down, whilst removing the temptation for me to spend on them. And also remove any chance of missed payments as this was also becoming an issue due to the timing of the DD's

I will be keeping a barclaycard that I hold as this one has the lowest rate, highest limit and has the least overlimit / missed payments

I should also point out that the current situation with my pay is temporary as I am on a 1 year training programme and will be passed, and making more money soon, once that happens I'll up the payment to clear them faster.

Sound like a plan?

grumbler

It makes more sense to make the maximum payment you can to the card with the highest APR and the minimum payments to other cards.
Also, I don't know if this applies to 'closed' accounts, but payments have to be made between the statement day and the due day. When making payments 'after payday' you can miss this window.
It would be easier to manage all DDs if you open a dedicated account for them, possibly the second account with the same bank.

connormill

They are all in the same region. 34-37% APR and paying off on the 1st of each month (I get paid on the last day of every month for the 1st is easier) would fit into the window for this

I do see your point re: paying highest APR first, but as the balance's are fairly low (~£400 each) and the interest rates are similar, surely the benefits wouldnt be that much?

nathand_2

connormill wrote: »

They are all in the same region. 34-37% APR and paying off on the 1st of each month (I get paid on the last day of every month for the 1st is easier) would fit into the window for this

I do see your point re: paying highest APR first, but as the balance's are fairly low (~£400 each) and the interest rates are similar, surely the benefits wouldnt be that much?

Although paying off the card with the highest APR first is the mathematically correct way you may find it helps to pay off the card with the lowest balance first. A nice little mental boost.