whihc to pay off first

Biggles77

if you have cards with balances on at 0% and some at 17% i would argue you pay more off the 0% as you will pay more off the total amount you owe. still paying the min off the others of course.

MPH80

Yes ... But the total amount paid in the long run is higher thanks to the interest.

grumbler

Biggles77 wrote: »

if you have cards with balances on at 0% and some at 17% i would argue you pay more off the 0% as you will pay more off the total amount you owe. still paying the min off the others of course.

What you are saying makes no sense to me.
While paying more on one side you keep losing more on the other side that increases the total amount you ultimately pay.

And start using 'Shift' keys, please.

Biggles77

I dont use shift keys at weekends

lovetowinacar

Biggles77 wrote: »

if you have cards with balances on at 0% and some at 17% i would argue you pay more off the 0% as you will pay more off the total amount you owe. still paying the min off the others of course.

Pay the minimum balance on the 0% cards and pay as much as you can on the 17% card.

fozmcfc

Biggles77 wrote: »

I dont use shift keys at weekends

That made me laugh, good comeback.

Anyway to the question, well it's up to you really and your situation.

The most cost effective is how others have said, highest interest/APR's first.

If you have just 2 debts, then I would pay as much to the interest attracting debt and pay 0% to the minimum. At the end of the 0%, there is always a good chance you can get another card at 0%.

If you have several debts, then you might want to do it differently.

When I had lots of debt, I didn't clear balances off in order of APR's or highest interest, I did it in a way I felt comfortable in doing it.

At first, I tackled the lowest balances first, so I had 1 less debt to think about and it made me see I was making headway. Then near the end I paid off the 0% card, quickly before the 0% run out and then focussed on my remaining loan.

Would I do the same again, probably the lowest balance bit first. But now being more financially savvy, I would probably pay the minimum amount to the 0% card, as I now know there was a good chance, I could get another 0% card.

eskbanker

Coming soon, a new book in the series, "Biggles Flies In The Face Of Generally Accepted Financial Wisdom"....