Best way to pay credit card?

Wayne352_2

I am paying off my credit card bill and wondering if it is best to pay off a lump on payment date then save money to pay another lump off on next payment date

or would it be better to pay off some each week, would this mean less interest when my bill is processed?

I have done the card tart game in past so please don't advise down that route(most cards are now 2/3% handling fee)

Thanks in advance

CLAPTON

the earlier you pay the less interest

Bisoy

What sort of card do you have, is it 0% or not anymore?

The best way of doing it is if it is 0% set up a DD for the minimum payment so that you won't miss any payment and put any excess to a high interest savings account. If it's no longer a 0% card either BT to another card or pay the remaining balance if full before it's promo ends. Hope that helps.

red74

My saving grace was a special offer for the life of the balance card. You may still have to pay a transfer fee but it can still be worth it.

I'd double-check how they work out interest if you don't pay the balance in full. I'm guessing it will be daily so you'd be better paying off small amounts weekly than waiting until the end of the month.

Wayne352_2

It is a nationwide card, no interest deal at mo, paying standard rates and not going to go down BT route cos i will get charged as much in handling fees as i will interest

Thanks clapton for your advice i will make weekly payments then make sure i pay over the minimum amount on payment date

YorkshireBoy

Wayne352 wrote: »

It is a nationwide card, no interest deal at mo, paying standard rates and not going to go down BT route cos i will get charged as much in handling fees as i will interest

How so?

A 12 month 0% BT offer will cost you 2-3% of the amount transferred. What's the APR on your Nationwide card? 15.9%?, 16.9%?

Wayne352_2

In general i would agree with you YB but i owe just over 3k and this will be paid within the next 3 month so time(i know i can apply online for cards) and BT handling fee is not what i am after at this moment in time

I am looking to get rid of all but one card which is my nationwide card (use this regular on trips abroad)
I have got no balance on any other card at the moment its just a case of shutting them down

YorkshireBoy

Wayne352 wrote: »

i owe just over 3k and this will be paid within the next 3 month so time

OK, I see where you are coming from (an average £1,500 balance over the next 3 months is going to cost you around £60 in interest). But...

I have got no balance on any other card at the moment its just a case of shutting them down

...when you call to cancel them you may get some offers to stay - especially from MBNA or LTSB if you have those cards. You'd take a 0% for 3-6 months fee-free deal (and save yourself £40-50 or so) wouldn't you?

Wayne352_2

Yeah great idea YB i have a MBNA card, cap one, egg card and leeds and holbeck

will ring them up first chance i get and see if any deals are fourth coming if they are will post in here to let you lot know

david_hellier

One thing you should not do is make the minimum payment. See chart below:

Monthly Credit Card Rates and Time Taken to

Payoff £$€1000* and the Interest Paid

Monthly% APR% Time Interest
1 12.68 11y 1m 470.93
1.1 14.03 11y 6m 544.93
1.2 15.38 12y 1m 627.18
1.3 16.76 12y 8m 718.86
1.4 18.15 13y 4m 821.88
1.5 19.56 14y 1m 938.45
1.6 20.98 15y 0m 1071.47
1.7 22.42 15y 11m 1224.44
1.8 23.87 17y 1m 1402.70
1.9 25.34 18y 5m 1612.80
2 26.82 20y 0m 1864.30
2.1 28.32 21y 11m 2170.94
2.2 29.84 24y 3m 2553.00
2.3 31.37 27y 4m 3043.14
2.4 32.92 31y 3m 3693.72
2.5 34.48 36y 10m 4602.18
2.6 36.07 45y 0m 5959.51
2.7 37.67 58y 6m 8211.90
2.8 39.29 85y 3m 12699.05
2.9 40.92 164y 5m 26099.39

*Assumes minimum payment of the higher of £$€5 or 3% per month