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gb12345

jeojadi wrote: »

Thank you for all your advice. I've spent a good hour reading a few threads, and been in the Debt-Free wannabe section also.

I can see now I have been a total wally - this is not the way to go.

I've made up a spreadsheet of the 6 cards, their rates, minimum amounts and had a go on that snowball chart. I've asked my bank for a 6-month overdraft increase, and will look to blitz the cards.

Am I right in thinking that it is highest-rate, as opposed to highest amount, that I tackle first?

As in I pay the minimum on 5, and pay as much as I can afford off the highest rated card, then move on to the next?

If you accurately complete the snowball calculator (APRs, amounts and amount available) then it should tell you exactly what to pay on each card.

As each card is cleared then cancel it so that the temptation to spend on it again is removed. You should then end up with one cards with the lowest APR. You can then use that card by spending and repaying to imporve your credit history.

AFK_Matrix

jeojadi wrote: »

The overdraft increase is for £200, I will use it to pay off the £200 card, as the O/D is 1%, the card is 32%.

But you said you can throw £750 at the debt so why don't you use this instead of extending your OD and still having to pay interest, all be it 1%? Pay it off with your spare money and be done with it and not have to worry about paying your OD off by a further £200.

jeojadi

You're right. I really shouldn't be allowed a bank account or credit.

:facepalm:

Cheers for all the advice.

AFK_Matrix

That's alright, you have at least had the very good sense to come here for advice from very knowledgeable people so your on the right track.

It takes time to get your head around debt and it doesn't help that there is no formal education when you are at school which would help a lot I think.

Just take it slow. First find out which is the highest interest card then phone up the other 5 card providers and say you want to setup a direct debit to pay the minimum amount. Then plow the extra money you will have into the high interest card and then repeat until you have no more cards.