Credit Card debt

Wozza85

4 CC's

Nationwide £4300 - Limit £4500

Barclaycard £9800 - Limit £10k

Tesco £1200 Limit £1750

MBNA - £2900 Limit £3300 0% interest til June 2019

Making payments but minimum and sometimes just a bit more. All cards except MBNA i am paying interest on.

I am sure to come across £1000 next month. Best place to put this?

And suggestions going forward to get rid of these debts in next 5 years.

anna_1977

which ever card is the highest interest

BakingC

Snowball effect, Pay the minimum + £1 (to avoid perpetual debt flag) on everything except the highest interest card and focus all extra payments onto that. Once it is paid off put the amount you were paying off the highest card onto the new highest and so on.

Post a SOA and I'm sure the lovely people here will be able to advise on ways to reduce / cut back to help the overpaying along faster.

Willing2Learn

I would definitely snowball, as advised above. However, which snowball method you use is up to you.


Method 1 (The MSE way), is to prioritise the debt with the highest APR first and then snowball your way down through the APR list. This method has the financial benefit of saving the most money by reducing interest payments the quickest.


Method 2 (The psychological way), is to prioritise the debt according to their amount, paying down the smallest first and then the next smallest and then working your way up the amount list. This method has the psychological effect of having the list of debts reduce quicker.