Best approach to clearing cards

stanzelsa

I have 3 high rate credit cards, all maxed out. One is £800, one £400 and the other £200. It's not a huge debt, especially considering I've got BP and BPD so splurge, I'm currently on my 2nd bankruptcy in a decade and a half and I've had my house repossessed in the past, so I'm not worried about it. The spending has been on things that are important to me (kids, grandkids, house and garden projects) which, after decades of spending on stupid stuff I actually feel happy about. There is nothing I need to spend now, apart from Christmas and 1 day a month out with the little ones over winter, until I take them on a UK break next August. So I'm confident I can clear it way before then.  I know I can't get a balance transfer. So my question is. What's the best way to pay them off? All the same interest rate (37%). So. Lowest first? Highest first? Or a set amount on each?

kimwp

If they are all the same interest rate, then people usually pay the smallest first, to reduce the number of debts as quickly as possible.

(While paying the minimums plus a small amount on the others)

flipflopflo

I agree with @kimwp. I would pay the minimum plus a bit to round it up on the two most expensive and throw everything you have at the £200 debt. When that is paid off you then add the minimum payment from the £200 debt to the payment for the £400 debt plus any other additional payments you can make. Then when that is all done you take the payment and add it to the £800 plus anything else you throw at it. 

Maybe have a look at the challenges thread and find ways of making a little extra money to throw at it. 

https://forums.moneysavingexpert.com/categories/debt-free-wannabe-challenges?utm_source=mseios&source=MOB_MSEIOS&utm_medium=mobile_app&utm_campaign=mse_topics