Which card to clear?

sandy55_2

Hi, new member here, please go easy if this has been discussed before.

I have 3 cards, each with similar chunky debt and each with only marginally different substantial APR. I have come into some money which will allow me to clear 1 entirely.

My initial thoughts were to clear the one with the highest APR. Then I wondered whether I could use the "threat" of clearing a debt and therefore of the card company losing my interest, to barter with each to get some lower APR.

Does anyone have any similar experience or indeed of just trying for lower APRs?

I would be grateful for advice or experience with this.

Thanks.

[Deleted User]

What are the cards, balances and APRs?

Highest APR first is generally wisest. But there are some cards that more likely to give offers than others, if you think you could clear it quickly and not spend too much on interest in the meantime.

sandy55_2

Cards are MBNA (was Virgin), Marbles and Barclaycard (was Egg).

APRs are early to mid 30s on each. Balances are around £9k on each.

I can afford the repayments but it will be a relief to be rid of one and speed up the repayments on the others. I don't use them very much at all nowadays. For the record, I have been a solid payer with no misdemeanours.

YorkshireBoy

You must have been rate-jacked on all 3 cards (and declined their offers to close them off to new spending) to have such high APRs with such high limits?


For that reason I don't think any of them will play ball and reduce their rates. Indeed, they'll see straight through your bluff.


MBNA and Barclaycard certainly dish out regular BT offers (one a month each for me, and with long 0% periods). However, your internal rating will have plummeted with them, and even if you clear a balance I can't see 0% offers coming any time soon (happy to be proved wrong though and hope they do for you).


On balance, if I was going to clear one, or more, I'd do MBNA first, followed by Barclaycard.

PDF

Not to go against YB's advice as he is spot on with it all of the time but from experience, my wife cleared her barclaycard (ex-egg) and within two months was offered 0% on balance transfers and money transfers, also barclays are throwing in good deals for people who clear and then threaten to close the account, I'd clear the barclaycard.

DebtFree14_2

Sandy

I think if you clear any of the cards you will be offered a good BT rate. I always get offered a 0% for 9 months when I clear my Barclaycard and normally 2.9% for 12 months with my Lloyds.

Barclaycard are also a sucker if you try and cancel your card. They offer you all sorts of BT deals and even credit your account with cash sometimes!

planteria

yes, obvious answer is purely: highest rate first.

however, if the rates are really similar then i quite like the idea of setting up minimum DDs to all 3 and then throwing all you possibly can at the MBNA card. reason being, if you can clear that one they may be willing to agree a 0% deal and allow you 1-2 of the other balances across. then you could throw all you can at the remainder.

sandy55_2

Thanks, all. To be honest, I had not thought about subsequent BT possibilities as I was keen on getting some rate reduction.

However, what you say makes much more sense and has become my new focus. That said, I am mindful of YB's suggestion that any BT offer might be a long way off for me.

From reading this and other threads, Barclaycard seem to be the first stop for discussion.

planteria

yes...the thing is, you make a plan with what you have and start to work it. if you can get a deal that makes it easier, sooner, later, anytime, you take it and evolve your plan.