Pay off Credit Card or Very?

Pebrey1993

Not exactly sure what to do here.

I have £800 on my credit card at 26.4%, and I have £500 on my Very account, but it's currently 0% until May, at which point it'll be 39.9%

So what do I do? Pay, say, £100 a month of towards the TV so I won't have to pay the 39.9%, or pay £100 off towards the credit card so that I'm saving 26.4% right now..? But of course that means I'll have to pay 39.9% on the £500 in May.

[Deleted User]

You need to do the maths on how long it will take you to clear both.

Dobbibill

Can you pay more than £100 to clear them both sooner?

Pebrey1993

No
What I'm thinking is pay off £100 off my credit card, cos that is costing me interest.
Then just pay off my very account with my credit card, then I'll be paying it off but at a lower interest rate

Dobbibill

That will work if you have a high enough credit limit and £800 is not your max, as you will have only paid 4 months before May.

Also make sure you don't run up a big balance with Very again before you've finished paying off the Very balance that moves to the credit card.

Pebrey1993

Yeah think that's my only option.

There's lot of debts going on and I actually prob could pay them both off. But there's lots of things going on. Consider this other scenario:

I have Take 3 payments of £110 this month, and the next two after that will be the same.
Do I pay off the entire thing to save £100/month. But the payments are interest free (will go to 40% if I don't pay it off in 3 payments, but I will)
Or pay off £300 off my other credit card which is 35% interest.
Will be saving more money long term cos of the interest but paying off Verg would save me £100 a month for the 2 months after.

Dobbibill

Pebrey1993 wrote: »

Yeah think that's my only option.

There's lot of debts going on and I actually prob could pay them both off. But there's lots of things going on. Consider this other scenario:

I have Take 3 payments of £110 this month, and the next two after that will be the same.
Do I pay off the entire thing to save £100/month. But the payments are interest free (will go to 40% if I don't pay it off in 3 payments, but I will)

Are you trying to convince us or yourself?

Don't pay interest if you don't have to but if you have credit cards with those sort of rates then you want to put as little as possible on them and/or pay them off ASAP.

Or pay off £300 off my other credit card which is 35% interest.
Will be saving more money long term cos of the interest but paying off Verg would save me £100 a month for the 2 months after.

You won't be saving by putting it onto a more expensive APR. You still need to pay that £100 and any other spare money towards your debt to clear it ASAP.

SnowTiger

Pebrey1993 wrote: »

Not exactly sure what to do here.

I have £800 on my credit card at 26.4%, and I have £500 on my Very account, but it's currently 0% until May, at which point it'll be 39.9%

So what do I do? Pay, say, £100 a month of towards the TV so I won't have to pay the 39.9%, or pay £100 off towards the credit card so that I'm saving 26.4% right now..? But of course that means I'll have to pay 39.9% on the £500 in May.

Ouch. Double ouch.

I'm guessing the TV is on a BNPL (Buy Now Pay Later) plan. That means interest on the purchase is accruing. It will be waived if you pay for the TV in full before May, otherwise it will be added to your account.

I think your best option is to throw as much money at your credit card balance as you can, then use the card to pay for the TV before it hits your Very account in May, along with a hefty amount of interest.

Fortunately you can use a credit card to settle your Very account. :rotfl: :T

PeacefulWaters

If you can use a credit card to pay Very then throw your £100 at your credit card debt.

Then settle the Very bill using the credit card. Before it becomes subject to interest.

Then continue the credit card repayments. Never use Very again as everything they sell can be bought cheaper elsewhere.