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Advice pls

vinnieboy
Posts: 74 Forumite
I have a few credit cards with small balances on ie coming down slowly with a long term apr of 3.9% and 6.9%. I have some others on standard rates varies from 11 - 13 %. The 11-13% ones tend to have higher balances which keep being carried forward each month.
I am in a position to pay an extra £200 per month but dont know if i should clear the smaller balances first (get them out of the way) and then put what i was paying to them to the higher ones? Or just pay the min to the reduced rates ones first as they are low anyway, and concentrate the payments to the higher balances and higher Apr?
What would you do?
Thanks!
I am in a position to pay an extra £200 per month but dont know if i should clear the smaller balances first (get them out of the way) and then put what i was paying to them to the higher ones? Or just pay the min to the reduced rates ones first as they are low anyway, and concentrate the payments to the higher balances and higher Apr?
What would you do?
Thanks!
0
Comments
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follow the snowballing method - which works by paying the most amount of cash to the card with the highest APR. This helps pay back the debts quicker due to the interest accrued each month!! It always seems nice to clear a card, but it works out quicker by following the method above.0
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