Which card to pay medium amounts off?

[Deleted User]

Naf wrote: »

I agree, the interest on 2x isn't 70.85%; it is actually half of that, 35.425%

You got it.

Naf

Deleted_User wrote: »

You got it.

I always had it
Now tell me what you think is wrong with the rest of my calculations!

grumbler

Naf wrote: »

...
I'm pretty certain that whenever I work the Barclaycard's balance down by around £500, I'll be offered another balance transfer at 6.9%. If I had a lump sum to pay off, clearly this is the way to reduce my interest the most as I'll pay off a chunk of the Aqua card, as well as reducing some of the interest rate on some of the Barclaycard.
But does the same logic apply when I'm paying the odd £100 extra here & there; do I still save an appreciable amount of interest if I pay that off the Barclaycard in drips & drabs 'till it amounts up to a BT offer?

By paying of £500 "in drips & drabs" you first lose about 45%-26%=19% p.a. on about £250 over the time it takes to pay £500 off.
Then you start saving 45%-7%=38% p.a. on the amount you can transfer (ignoring the BT fee).

pmartin86

Naf wrote: »

No, you don't seem to see where I'm coming from.
Currently I pay interest on x amount on both Barclaycard & Aqua:
x at 44.95% and x at 25.9%
I agree, the interest on 2x isn't 70.85%; it is actually half of that, 35.425%

But if I only have x to pay off somewhere, say it's £100 and takes a year to pay off for simplicity, then look at it again:
-On the Barclaycard I pay off x amount with cash saving £25.90 as its no longer on the card
-On the Aqua card I save 44.95% off x amount (it's no longer on the card as the BT pays it off) - that's £44.95 saved
-On the Barclaycard x amount is added back on , costing £3 BT fee, and a new interest rate costing £6.90.
Total cost if I hadn't paid anything off: £70.85
Total cost if I pay x off Barclaycard then BT to Aqua: £9.90
Total saving: £60.95

EDIT: as the amount I paid off in cash was £100, saving £60.95 represents 60.95% interest saving.

60.95% is a monthly rate, not the APR, it would be 5.07%

Naf

pmartin86 wrote: »

60.95% is a monthly rate, not the APR, it would be 5.07%

No.
Firstly, monthly rates are lower than APRs;
Secondly, just dividing/multiplying by 12 is not the way to convert between APR & monthly because that doesn't account for compounding..
Third; the calculation you have done should round to 5.08 anyway.

pmartin86

I choose to stick with your signature and depart this thread, you clearly know what your doing, good luck.

CLAPTON

Naf wrote: »

I'm undecided where to pay extra £100-£1000 off my credit cards.
I have an Aqua card at 44.94% and a Barclaycard, some at 25.9% and some at 6.9%.
I'm pretty certain that whenever I work the Barclaycard's balance down by around £500, I'll be offered another balance transfer at 6.9%. If I had a lump sum to pay off, clearly this is the way to reduce my interest the most as I'll pay off a chunk of the Aqua card, as well as reducing some of the interest rate on some of the Barclaycard.
But does the same logic apply when I'm paying the odd £100 extra here & there; do I still save an appreciable amount of interest if I pay that off the Barclaycard in drips & drabs 'till it amounts up to a BT offer?

what are your current balances and what are your credit limits?

Naf

CLAPTON wrote: »

what are your current balances and what are your credit limits?

Barclaycard about 3550/3650
Aqua about 1550/1600

Sailing close to the wind, I know.

dotdash79

Pay off the Aqua card first