Do I pay interest free first?

Sma1991

My sister has got herself in a bit of a mess with her credit cards, she had a cred it cars with capital one and ended up nearing her limit and decided to do a balance transfer to Halifax and did the same thing again on the original capital one card and then balance transferred to Barclay , both of the balance transfer cards are interest free, Barclay card currently has £1360 on it and the Halifax has£1453 on it, the original capital one card has £896 on and I can’t remember the interest details for it at this moment in time. She has just had just over £400 back from HMRC for overpaying tax and she wants to use it it to take a chunk off her credit cards, she is already making more than the minimum amount on each card each month, I’m trying to find out which card she is better to pay the £400 on and wether she is better off focusion on paying off the interest free credit cards first or the capital one card with interest ? Btw the interest free runs out in sept and November next year for each card

Ebe_Scrooge

Pay as much as you can to the highest-interest card first, whilst continuing to pay the minimum on the interest-free card. Once the interest-bearing cards are clear, then focus on paying off the 0% ones. On the 0% cards it doesn't matter whether you pay the minimum or more, but it is important to make sure you've got money put aside to clear them when the promotional rate expires - there's no guarantee you'll be able to shift the balance again to another 0% card.

D_M_E

Pay it off the Capital One card, it costs a fortune in interest.

Pay the min on the other 2 and put everything spare to clearing the Cap One then when it's cleared increase the payments to the other 2.

Also she should consider stopping using the Cap1 if she does not clear it in full every month - it's costing a lot of money.

PRAISETHESUN

Make sure to always pay the minimum amount on all cards, and then throw any excess money at the cards with the highest interest rate debt - leave any 0% cards until last. If paying more than the minimum one one card that is at 0%, use that money to instead pay off the higher interest rate cards. Once paid off the Capital One card, focus on the 0% offer ending soonest.