Repayment order

Hoenir

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.  

 I'll get a strong coffee 

As long as it's one brewed at home !  Every £ you can channel into card one will make a difference. 

Brie

Where there is more than 1 card on 0% my method has been to pay the minimum and set aside the max I can afford somewhere ready to put on the deal that expires first.  Paying it off a couple of weeks before the deal ends is the least anxiety provoking.  Very often when I've made the penultimate payment I get someone from the card company to tell me, in writing, (chat box is fine as long as you copy it) to tell me what's the last date I can pay and how much.  This is particularly important for those rare cards that allow you to run a 0% deal at the same time as using the card for free (M&S) or where you have more than one deal on the same card with different end dates.  

Dannii75

Brie said:

Where there is more than 1 card on 0% my method has been to pay the minimum and set aside the max I can afford somewhere ready to put on the deal that expires first.  Paying it off a couple of weeks before the deal ends is the least anxiety provoking.  Very often when I've made the penultimate payment I get someone from the card company to tell me, in writing, (chat box is fine as long as you copy it) to tell me what's the last date I can pay and how much.  This is particularly important for those rare cards that allow you to run a 0% deal at the same time as using the card for free (M&S) or where you have more than one deal on the same card with different end dates.  

that's really helpful info, thank you! 

mgfvvc

Dannii75 said:

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?

There are key details missing here. 

Can you afford to pay off all 3 in the 25 months available on the card 3 0% balance or are you going to end up with debt outstanding at the end? 

If so, how much can you afford to pay and how much is likely to be outstanding? 

What are the interest rates on 2 and 3 when the 0% rates end?
Based on the information so far the approach of paying down the card on which interest is currently paid makes sense. Any debt left in there will increase by over 40% in 2 years so, even if you end up paying a higher rate on the outstanding debt after the 0% deals end it will take years for the increased interest to outweigh the interest that you would incur n the 20% card.

Absent any further information, first try to get everything on a 0% deal. If you can't then can you get a personal loan at a better rate to pay the debt off? Otherwise stick to paying down the card on which you are paying interest for the next 18 months.
As the 0% deals come to an end look for opportunities to refinance them at the lowest possible rate,
Remember, if you refinance using a personal loan, don't treat that as an opportunity to borrow more.

born_again

mgfvvcIf you can't then can you get a personal loan at a better rate to pay the debt off? Otherwise stick to paying down the card on which you are paying interest for the next 18 months.

As the 0% deals come to an end look for opportunities to refinance them at the lowest possible rate,
Remember, if you refinance using a personal loan, don't treat that as an opportunity to borrow more.

If going the loan route. Then close the CC's & there is no risk of building a further debt up.