How should i divide it up

listellor

I have 3 credit cards
Barclaycard 26% £8450
Lloyds 25% £2750
NT WEST 22% £900

My credit rating has improved to such a extent i have got a 36 month balance transfer . now over the next 2 years i will come into around £5 - 7k from company bonus schemes i believe 2008 2009 . but intially what would be the best division of the limit . one thing is i would prefer fewer cards so i was thinking of using it to clear the nw and lloyds and then use the remainder on barclays

Any comments

molerat

Clearing the NatWest may make you feel better - 1 less card and relatively easy at only £900 - but the Barclaycard is costing you more, £300 a year more than having the same balance on the NatWest. The sensible thing to do is pay down as much of the higher apr card as you can.

bigadaj

The other thing that may have an impact is what percentage of your available credit are you utilising. The lower this is the better and more likely to get more 0% deals to shift more debt, and clear it more quickly.

Whilst getting rid of the natwest card is emotionally attractive, it would probably increase your utilisation to available credit which is one indicator of debt stress.

listellor

thankyou for that .i must admit i was thinking along those lines of using the biggest bit to clear as much of the barclaycard and re jig my monthly payments which all are about minimun