Advice on store/credit cards

Kazz

OK, after getting into a bit too much debt I've been trying to sort myself out.
I've managed to get mostly everything reduced to manageble payments.

I have 2 cards, an Evans Store Card & an Evans Essentials Mastercard. Balance on the Mastercard is £493 & the Storecard is £290. Both cards are from GE Money.

What I'd like to know is. I have the funds at the moment to pay off the £493 one. I am paying that one off wthout a doubt. However, if I try to sort out a payment plan for the storecard, will it affect the credit card? Both are different account numbers but obviously in my name. I really want to keep the cc for emergencies but don't want to pay it off if it's affected by reducing payments on the other.

Paying a couple of hundred to each one is not really an option as I want the cc completely cleared as monthly payments for both are too much.

floss2

Which has the higher interest rate?

Kazz

The storecard is 29.9%
The credit card says 2.21%. does that not seem awful low though? Have checked 2 statements & that's what it says.

If I reduced the amount on the storecard though, I would be hoping for them to freeze interest. I've managed to sort the debts myself rather than going to the CAB so I would hope to do this one like that if possible too?

floss2

Pay the storecard off with your funds, then pay a lump sum off the other & keep it STRICTLY FOR EMERGENCIES!

pinkkat8910

I second what Floss's advice ... theres no guarantee that store card will freeze the interest and so you could end up still paying up nearly 30%

Kazz

Thanks both of you, will take what you said on board.

chloebelle

store card interest in terrible, plus they usually whack on a £25 charge if you don't pay the minimum payment. Personally I would clear the store card now, and then work on the credit card

Kazz

albertross wrote: »

The 2.21% is probably per month

Yep, I knew it couldn't be for a year so I went through all the FAQ's & it is monthly. Is that high for a month?

Both cards are form the same provider. £12 late payment fees & I got 1 each for last month. I've had the storecard for about 3 years & managed fine. Went into Evans last November, they said something about upgrading, I said yep ok. 2 minutes later she said I'd been approved for a Mastercard & that's when I started going downhill, it was so easy to spend it in Tesco & places like that. Only a £500 limit but very silly to give a single unemployed mum a cc.