Credit Cards - Help to understand snowballing

Konamb212

Hi Folks

Just looking for a bit of advice, as I cant seem to find out (or understand!!)  the relevant way to work it out.

I have 2 credit cards. Card 1 has balance of 9300 at 27.3% APR. Card 2 has balance of 4200 at 17.9%

I'm trying to work at a 4 year plan. (this started 2 months ago so now should be around 3 yrs 10 months)

Have tried balance transfer soft searches and none are coming up so thats not an option.

Card1 minimum payment is around £275 in this current month, Card 2 minimum payment is around £95 or thereabouts.

Using the barclaycard fixed payment calculator, and going on the 4 year plan, I am currently making fixed payments of £320 to card1 and £124 to card2

What I am trying to work out is - am I better off paying minimum to card2, and upping card1 to around £349, then when card 1 is cleared, pay everything to card2?

Would I still be within my 4 year timeframe?

Also to add, I am fortunate enough to be in employment which will not really be affected by any financial downturn to the economy, and in fact, we are due to have a long running pay dispute settled in the coming months, where an anticipated back pay lump sum of around £4k will be paid, so this will also be going to Card1 when It arrives - just in case this changes the calculations.

I  also intend contacting Card1 issuer to see if I can be transferred onto a lower rate, though I fear not as I enjoyed 24 months form a previous balance transfer ( and before you all scream at me - yes I did spend opn this card, despite everything which is advised)

All advice gratefully received.

Konny

[Deleted User]

Throw as much as you can at the highest rate card, with minimum plus a pound on the other to help avoid a min payment marker.

Willing2Learn

Hi,

There are two differing snowball methods.  Choose the one that suits you best.  They are both described in the article linked below:
https://www.thebalance.com/debt-snowball-vs-debt-stacking-453633

Konamb212

Thanks for the information. Will try to work out again to see if I can make better sense of it. That article is very straightforward 👍

Narola1976

Konamb212 said:

Thanks for the information. Will try to work out again to see if I can make better sense of it. That article is very straightforward 👍

I have just started using this app for snowballs - its called Debt Payoff Planner. You may find it useful as it will do the calculations for you so you can choose the best option. And it will tell you when you will be debt free by