Which should I attack first?

spl2nh

removed by author

Crown

Hi, I would personally throw all my debt repayments at the MBNA card as even though its 0% at present you will end up paying the rate of 17% back in May instead of just 7% on the term.

Take a look at the snowball calculator on whatsthecost.com. I havent done this would be suprised if the maths said the other way was cheaper

Seaxwyn

I would do it the other way round - pay off the Barclaycard first - as when the 0% rate ends in May, you can surely transfer the balance to another low APR card.

The snowball calculator will definitely say pay the MBNA one first as it can't factor in plans to balance transfer.

peb

Or; could you pay minimum payments to both, save the surplus thus earning interest and then throw the money at teh MBNA one in May 2008? You will also see how near to paying off all the MBNA one you are and can divert the rest of the funds at the Barclaycard. I have to say with the credit state as it is I am not so confident that the low LOB deals will still be available next May.

Good luck whichever method you choose.

Crown

I see your point Seaxwyn although it it depends what the financial situation is like since the original LOB offer was taken. I had a Barclaycard at 2.9% LOB before I run up another card with the Halifax. In my case my credit rating then deteriorated and it would be very unlikey that Barclays would have offered me another LOB as they reduced my credit amount.

To the OP it depends on your circumnstances. As Sea says if you feel you will be in a position to get another deal then go for it although be careful

Dr_Hook

I agree with paying barclaycard off first, then transferring the MBNA balance onto the barclaycard (or applying for another card to transfer to) before the 0% rate expires.