Two cards with mid balance or one card with high?

Dan.

I currently have two cards, both with around £4k balance and both on 0% which I pay more than minimum payment each month on.

As I've just swapped one of them to a new card with 20 months 0% I have enough of a limit on that to take both balances.

Which is best practice -

Two cards with about £4k balance (about £7k + £9.5 limits) on each

or

One card with £8k balance (£9.5k limit) and cancel the other one?

TIA

[Deleted User]

It makes little difference from a utilisation or affordability point of view how you spread the debt as long as you don't cancel either card.

Put the debt onto whatever is the longest deal (assuming no fees).

Ben8282

What do you mean exactly by 'swapped' one of them?
Best practice is normally not to cancel cards, not to use cards right up to their limit and not to unnecessarily transfer balances unless the 0% period is about to end or pay unnecessary fees.

Dan.

Ben8282 wrote: »

What do you mean exactly by 'swapped' one of them?
Best practice is normally not to cancel cards, not to use cards right up to their limit and not to unnecessarily transfer balances unless the 0% period is about to end or pay unnecessary fees.

I mean, I had one where the 0% was about to end so took a new one out, transferred the balance on 0% fee and closed the old one that was then on zero.

Ben8282

Why did you close the old card?
From what you have written in your OP are we to assume that you never use credit cards to buy anything on a day to day basis?

Dan.

Ben8282 wrote: »

Why did you close the old card?
From what you have written in your OP are we to assume that you never use credit cards to buy anything on a day to day basis?

Because I was about to get charged interest on my balance.

No, I dont spend on CC anymore, these are old debts that I'm clearing off.

Ben8282

If the balance was 0 you would have had nothing to pay interest on!

If you had kept the card you could have used it for purchases, repaid in full each month thereby not paying interest and getting up to 56 days interest free credit, s75 protection and keeping your money in your bank account longer.

If you don't want to use credit cards and are just paying off old debt then can't really understand your interest in best practice.

Dan.

Ben8282 wrote: »

If the balance was 0 you would have had nothing to pay interest on!

If you had kept the card you could have used it for purchases, repaid in full each month thereby not paying interest and getting up to 56 days interest free credit, s75 protection and keeping your money in your bank account longer.

If you don't want to use credit cards and are just paying off old debt then can't really understand your interest in best practice.

Obviously a card with zero balance will not have any interest. Did you not understand what I was asking? I have not intention to spend on credit cards again.

If there is nothing to be gained by my suggestion, just saying that would have been fine rather than wasting your time suggesting how I should spend my money

[Deleted User]

Dan. wrote: »

Obviously a card with zero balance will not have any interest. Did you not understand what I was asking? I have not intention to spend on credit cards again.

If there is nothing to be gained by my suggestion, just saying that would have been fine rather than wasting your time suggesting how I should spend my money

That’s your choice.

The advice given though was perfectly sound advice.

BISCUIT1

How long is left on the second card's 0% deal? If it is not too long then it might be worth putting it all on the new card to save having to take another new 0% out when it ends and risk not getting a new 0% ( and I assume no fee?) deal..you would have 20 months on both amounts which gives time to try to pay off more and new deals to come through..I am no expert but just what I would do.

BISCUIT1

How long is left on the second card's 0% deal? If it is not too long then it might be worth putting it all on the new card to save having to take another new 0% out when it ends and risk not getting a new 0% ( and I assume no fee?) deal..you would have 20 months on both amounts which gives time to try to pay off more and new deals to come through..I am no expert but just what I would do.