My Graduate (Post-Student) Debt Diary!

MrJester

>12 Months

sauceoclock wrote: »

Hmm. Tricky.

What are the interest rates on each of the cards? I'll do some maths (yay working in finance) and should be able to tell you which option will be most expensive and which option will be least expensive.

I'd be tempted to close the third card initially but it may not be the most cost effective plan of action!

I'm not entirely sure. I know the bcard is a 2.03% per month interest (I think this is somewhere around 29.9% apr?), The capital one is 30.340% apr, and the halifax 21.95% p.a. - I assume this means same as APR? I forget. It may be different rates along the card as it has multiple balance transfers, which may have been at different deals.

So if these are right (went off my statements, assuming they are) the capital one has the worst interest rate, but then again the amount on it is the least.

Go go gadget math wizard sauce :D

System

ON IT!

Update soon

What's the minimum repayment percentage on each? Sorry for all the q's, just want to accurately work out the cost of the minimum for each!

MrJester

>12 Months

sauceoclock wrote: »

ON IT!

Update soon

What's the minimum repayment percentage on each? Sorry for all the q's, just want to accurately work out the cost of the minimum for each!

Wow thanks sauce.

I'm unsure on this, but I tried working it out based on latest statements (the percentage of minimum payment compared to the total balance):
Capitalone: 3.54%
Halifax: 2.69%
Bcard: 2.11%

Assuming this is correct! It does seem to coincide with the interest rates between them..

MrJester

>12 Months

Thanks a lot sauce, amazing. Good to see them clear as day like this.

I think probably throwing it at the Bcard makes most sense in effectiveness of this injection of cash. At which point I'll just keep the others on minimum and try and demolish the Bcard as quickly as I can.

Then, as I said, once its gone I might get the option to get another barclaycard (or another card) with a 0% deal.

Rang jobcentre earlier they're posting a confirm letter of what was paid to me during last tax year. Then provide this over to HMRC.. and keep ringing them to bug them about the status until they send me the tax rebate
I'm also waiting to hear about this Barclays complaint I made, I get texts every so often "you're complaint is important to us, we will be in touch soon" so they're aware of it still I might just have to give them a ring sometime, basically was about misselling of the plus accounts they had the guy who sold it to me said it would increase my chances of overdrafts so should end up getting all that money back for that plus interest.

System

Okay so based upon the below details I made you a table to have a look at.

Capital One
£1000.00 Balance
3.54% Minimum Repayment Per Month
30.34% APR
Minimum Repayment £35.40

Halifax
£1750 Balance
2.69% Minimum Repayment Per Month
21.95 APR
Minimum Repayment £47.07

Barclaycard
£2400 Balance
2.11% Minimum Repayment
24.36% APR
Minimum Repayment £50.64

If you pay £200 a month (minimum repayment for each then the leftover money off the Bcard). This is your debt. (Replace dollars for pounds)



Then I looked in to what would happen if you paid off cards etc or even chunks off each. The best option by far is to pay off £1500 off the Bcard.. This is your debt when you do



As you thought, it's much better off to pay down your Bcard as it's the highest interest. However you should know that by doing so you shave your debt by 18 months.. if you avoid the Bcard and pay off your capital one card up front reducing your cards from 2 to 3 you actually don't do yourself any favours.

When making extra payments (above the minimum repayment) always make them off your Barclaycard card - meet the minimum repayments for your Capital One Card & Your Halifax Card.

System

Sorry, I needed the extra info from you to make a more accurate repayment plan.

MrJester

>12 Months

I feel like you will be sending me an invoice for this accounting sauce!!

Yes they often say general rule pay the one with the highest interest rate. But the difference in amounts is over double making the Bcard substantial and well in need of being paid off asap.

Although it looks like you have bcard as 24.36 apr, I'm sure on my statement it said 29.9, i guess you worked your number out based of the interest per month i gave?

System

MrJester wrote: »

I feel like you will be sending me an invoice for this accounting sauce!!

Yes they often say general rule pay the one with the highest interest rate. But the difference in amounts is over double making the Bcard substantial and well in need of being paid off asap.

Although it looks like you have bcard as 24.36 apr, I'm sure on my statement it said 29.9, i guess you worked your number out based of the interest per month i gave?

I actually don't know what I was thinking!!! Sorry, doing boring work accounts at the same time, that's a completely non-compounded rate so you can count on your Bcard being a bit higher APR. The rule still applies though. I know it must be super tempting to pay off that capital one card but your interest will be so much more costly on Bcard if you keep that one around longer. You got this!

MrJester

>12 Months

sauceoclock wrote: »

I actually don't know what I was thinking!!! Sorry, doing boring work accounts at the same time, that's a completely non-compounded rate so you can count on your Bcard being a bit higher APR. The rule still applies though. I know it must be super tempting to pay off that capital one card but your interest will be so much more costly on Bcard if you keep that one around longer. You got this!

Not at all thanks for the help. Yes it is tempting, the feeling of getting one card gone and all that. If i'm not going to clear any all at once, then maybe I can distribute the cash injection cleverly among them for maximum interest busting, and then fix on a decided monthly repayment across them with the same interest busting intention.

I think of this because if I pay a chunk to Bcard then its total amount becomes less than both the others, making it actually the least worst at that point, which would then make it a good idea to move on to the next highest amount comparing it with the interest rate.

E.g. I could do something like bring all of them to around £1000 mark immediately. At which point they are all the same balance, and work out monthly payments to pay the most to the highest interest rate first.

I expect to get around 1900. So lets say use 700 to take off the Halifax to bring it to 1000, then 1200 off the Bcard to bring it to 1200. Concentrate on Bcard to bring it to 1000. Then work out payments in a CapitalOne>Bcard>Halifax priority.

Hmmmm?

System

That sounds like a good idea, just remember you'll still be required to make your minimum repayments on each, so once you've assigned the larger chunk of funds then choose the one you want to pay off first and continue to pay the minimum off the others then your max repayment on the one you've decided on - I'd say in this instance it should be the capital one card as it's got a whopping APR.