Order of repayment HELP - don't know what to do!

pqrdef

If you can't get a 0% card, there are also low-rate-for-life-of-balance cards. And consolidation loans, if you're a homeowner.

Big debts aren't necessarily a problem if your payment record is OK.

Personally I'd pay £6K off the green card, keep up the same payment and aim to clear it in 3 months. Then use it for some controlled monthly spending and pay it off in full every month. Make it look like you're in control.

msallen

The difference in interest is worth £10 a month (26% - 24% = 2%, 2% of £6K = £120 pa). However if you could get £6K of your debt moved to say 10%, that would be worth £80 a month. I'd take a gamble...

I'd pay off the green card as quickly as possible, then just sit on it, possibly using it for a nominal spend as long as you pay it off. After a few months I'd bet you'll get some sort of BT offer on it - not necessarily 0%, but even the 10% I speculated above would be damn good.

You also get a great psychological boost from paying a card off. It'll spur you on towards your goal. I'm making good progress on mine, and I now religiously work out the most economic way of allocating money to my debts, but I still go against the hard logic occasionally if I can pay a card off completely.

FYI I started off with most of my debt on high APR cards, but luckily had one with a 15K limit and a permanent 8% BT rate. Through judicious juggling and taking up balance transfer offers when they arose, I now have about 4K on 8%, 3K on 6% and the rest on 0% less than 18 months later

[Deleted User]

zerog wrote: »

you should just pay off the 26% card, leaving it with £5600.

I agree.

And, with the balance massively reduced, the monthly amount you are paying will be well above the minimum payment, meaning you will be reducing the balance much quicker.