Repayment order

Dannii75

Could you lend me your brain please? 
Which is the most sensible/ effective way to pay off the following?
Card 1: £1820 19.2% 
Card 2: £2981 0% for 22 months
Card 3: £2270 0% for 25 months

I can afford to pay the two 0% over exactly the 22/25months rather than just the minimum payment, I can also pay a little more than the minimum for the 19.2%, but does it make sense to do that? 

Thank you! D

MorningcoffeeIV

Pay as much as you can to the 19.2% debt and minimums on the others.

BoGoF

Pay minimum on 2 and 3 and as much as you can to Card 1. Once Card 1 cleared recalculate what you need to pay to others to clear them in 0% period.

Dannii75

Ah! that's flips my thinking on its head! Which is probably why I have this debt! 
I honestly thought it would be the opposite way around!

Let's say I can pay off card 1 over 20 months, that would only leave me with 2 months to pay off cards 2&3, which I assume would be impossible?!?! Then I'd end up with the remaining debt on 24% interest. Is that right?

Yours confused/ confusing myself more! D

Nasqueron

More that you pay off 1, the less interest is added so the quicker it's paid down. No brainer to pay the minimum on the other 2 and throw everything at card 1

Dannii75

Nasqueron said:

More that you pay off 1, the less interest is added so the quicker it's paid down. No brainer to pay the minimum on the other 2 and throw everything at card 1

Thanks for your reply, that message is coming in loud & clear. I'm just concerned that I'll be left with debt on cards 2&3 on a higher rate at the end because they won't have been paid off. Confused! 

BoGoF

Dannii75 said:

Nasqueron said:

More that you pay off 1, the less interest is added so the quicker it's paid down. No brainer to pay the minimum on the other 2 and throw everything at card 1

Thanks for your reply, that message is coming in loud & clear. I'm just concerned that I'll be left with debt on cards 2&3 on a higher rate at the end because they won't have been paid off. Confused! 

But they are costing you nothing now and the 19% one is. Once 19% paid off you use that money for cards 2 and 3.

Brie

I've no time this moment but I could try to run the numbers for you later if you pop back with the minimums required for each card.  And the max you have available to pay as well each month.  That said pay them in the order of max on C1 until clear, then C2 and finally C3.  

Dannii75

BoGoF said:

Dannii75 said:

Nasqueron said:

More that you pay off 1, the less interest is added so the quicker it's paid down. No brainer to pay the minimum on the other 2 and throw everything at card 1

Thanks for your reply, that message is coming in loud & clear. I'm just concerned that I'll be left with debt on cards 2&3 on a higher rate at the end because they won't have been paid off. Confused! 

But they are costing you nothing now and the 19% one is. Once 19% paid off you use that money for cards 2 and 3.

I 100% believe you are all correct, you know better than me, that's for sure! 
I'll do some calculations on paper so I can see how it would work, that might make it clearer in my head!
Thanks everyone. D

Dannii75

Brie said:

I've no time this moment but I could try to run the numbers for you later if you pop back with the minimums required for each card.  And the max you have available to pay as well each month.  That said pay them in the order of max on C1 until clear, then C2 and finally C3.  

You're very kind, thank you. 
I'll definitely pay them in that order. I'll get a strong coffee & have a go at it myself so it makes sense to me/ I understand it better.
Let's say by some miracle I can transfer card 1 onto 0% too.... is there an order they should be paid? Or is it paid off proportionally? 
Thanks again! D 

CliveOfIndia

Dannii75 said:

Brie said:

I've no time this moment but I could try to run the numbers for you later if you pop back with the minimums required for each card.  And the max you have available to pay as well each month.  That said pay them in the order of max on C1 until clear, then C2 and finally C3.  

Let's say by some miracle I can transfer card 1 onto 0% too.... is there an order they should be paid? Or is it paid off proportionally?

If you've got 3 cards on 0% then there's a couple of approaches.  Arguably the best approach is to pay the minimum each month to each card, but at the same time put money into a savings account each month so that you'll be able to repay the full balance when each promotional rate expires.  And hopefully you'll earn a bit of interest on your savings in the meantime.

If you don't want to go down that route, just pay an amount each month that means you'll clear the card when the promo expires (for instance, if you've got £1000 balance and a 20 month 0% deal, just pay £50 a month).