New Job - Pay Off Cards

katie4

Hi Everyone
I'm new here
we have loans and credit cards we struggle to pay the minimum every month and usually end up borrowing off family


i worke two days a week up until this week. i have just been made full time which means a pay increase of £800 a month!


i can finally see the light to the end of my debts and im excited but what is the best way to pay off the debts with this money?


snowballing? any other option?


Plus will my credit score increase with each debt that is paid off?


Once the cards are paid off should i close the accounts or keep them open?


thanks in advance everyone


Loan £300
Loan £450
Credit Card £4,000
Credit Card £3,300
Credit Card £1,200

[Deleted User]

Your credit score will probably reduce as you will be making changes to your debt, but you will look more attractive to lenders, which is all that matters, not the pretend score.

Start by paying the highest rate debt and work down.

dresdendave

As per the previous reply, it's the card's APR, not the amount outstanding you need to consider. Minimum payments on lowest APR cards and as much as you can afford on the highest.


As debts lower your creditworthiness should improve and you may be able to get a BT card at 0%, which would allow you to pay down the debt at a faster rate.