Do I pay the balance off 0% or the interest charging one?

jamjar92

I have just moved some of my debt (£5700) to a 28 month 0% card, with the reminder still charged at a 6.9% rate (£8000). The 0% card will be 21% at the end.

Do I pay the mininum on the 0% card plus £10 extra to keep the M off my credit file, and pay as much as possible off the other card at 6.9% and move the remaining debt of the new cards to another 0% deal in two years.

Or do I clear the debt on the 0% card in 28 months to avoid the 21% rate, and carry on a fixed amount (more than min) on the 6.9% card?

I have another card I spend about £100 a month on and pay in full.

[Deleted User]

You clear the highest rate debt.  Look to move the other balance towards the end of the 28 months, when your indebtedness will be much lower.

If you can move the 6.9% debt to 0% now, then obviously do that.

jamjar92

This is the first 0% I have been offered for a quite some time, could move another £1000 to the 0% and then would be near the limit (is that recommended?). The only 0% offered now are the 6 months ones so better to leave it on the 6.9% card. I thought pay the higher rate first and gamble another 0% offer will be available in 2 years time.

MinuteNoodles

jamjar92 said:

I have just moved some of my debt (£5700) to a 28 month 0% card, with the reminder still charged at a 6.9% rate (£8000). The 0% card will be 21% at the end.

Do I pay the mininum on the 0% card plus £10 extra to keep the M off my credit file, and pay as much as possible off the other card at 6.9% and move the remaining debt of the new cards to another 0% deal in two years.

Or do I clear the debt on the 0% card in 28 months to avoid the 21% rate, and carry on a fixed amount (more than min) on the 6.9% card?

I have another card I spend about £100 a month on and pay in full.

How much spare income do you have? Not a lot and you pay the minimum plus a few quid on the 0% card, repay the one with interest off as fast as you can then BT at the end of the 0% deal.

If you've a reasonable amount of income you repay the one with interest off as fast as you can but you set up a direct debit on the 0% one to fully clear it's balance by the end of the 0% deal so you don't find yourself in the situation many do on here still with a balance of £1000s at the end of the 0% deal facing being put on high interest because they can't get another 0% BT deal to move it to.

Remember there's no guarantee you'll get another BT deal at the end of this one. A lot can happen in 2 years.