pay off credit card or debt??

MattyJW2021

Hi all, I have just joined here to get some advice from you guys, i have around £1500 to pay off a debt - one is a capital 1 credit card with around £1400 on it and the other is a debt held by Link Financial for around £1400 too. There is no interest accruing on the link debt whereas there is on the credit card so which do i pay off? 
i was thinking of going to link and offering a settlement figure around £1200 which hopefully they would accept and i could then put this to the capital one debt or do i pay the credit card and continue to pay the link monthly??

many thanks!!!

draiggoch

Probably best to pay off the credit card if it is accruing interest, especially at over 20%.
Once paid off use any money you usually pay towards credit card to pay more at the Link debt.

mcpitman

The money saving advice would be to pay off the Capital One card (as it is accruing interest).

Is/was the Link Financial debt in arrears or been defaulted? What are you paying to that currently and has interest been frozen?

Andyjflet

Pay off the credit card then snowball the payment into the loan, great news. 

MalMonroe

Pay it to the credit card. You'll still have to pay some interest on that balance but it won't be as much. Then I'd pay more to the credit card than to the 0% loan if I could and get rid of that payment altogether. 

SusieT

I would pay off the credit card, but be very careful and look out for a bit of residual interest the following month, and pay it straight away. Make sure you have a statement showing a nil balance and then close the account. 
The remaining money I would put into premnim bonds or somewhere that is easy to access in an emergency, but not in a bank account where it is too easy to get at. That way you have started to save and have a good start towards not needing a credit card if something goes wrong.
Then put whatever you are currently paying off the card towards the loan so that it is repaid earlier.

kimwp

I think the first thing is why you aren't paying interest on the loan?

enthusiasticsaver

Have you defaulted on the Link debt and that is why there is no interest? I would pay off the credit card.

MattyJW2021

thanks all for the great advice!!! so i contacted Link - this was another credit card that i just couldn't pay back so i defaulted and it got sent to Link - i pay them £150 pm with no interest - today i thought id ask them if they would accept £1000 F &F settlement to which they have agreed so i'm thinking if i pay that and close this one then the remaining £500 i can put to the credit card leaving a £1000 on there to pay - the limit on this on is £1700 so it hits my credit rating as im over 70% of the limit - i can then take the £150 and add to the monthly payment thus paying it off quicker and my credit rating will improve instantly....