Help understanding Interest Rate

Danero

Hi all,
So I'm setting out on my own mission to get a handle on my debt.
I've sorted a few smaller bits, but I have 2 "big" cards and I'm trying to work out which has the highest interest rate, but they seem to both use different metrics?

Card 1 says:
- Simple standard rate p.a. 30.93% (35.7% compound equivalent)
- Simple cash rate p.a. 30.93% (35.7% compound equivalent)

Card 2 has a box that says:
- Cash Interest Monthly rate 2.8%
- Purchase Interest Monthly rate 2.8%
- Standard balance transfer Interest Monthly rate 2.8%
- Default charge Interest Monthly rate 2.8%

I've seen Martin say to always start with the highest interest rate, but I'm just not sure which that is? Do I just multiply Card 2 x 12 to work out an annual rate that would match card 1? And if so, which of those rates would I work against?

Hoping someone here understands these things better than me!! 😕

Thanks in advance!!

JGB1955

Card 1 is charging 30.93/12 (2.58% per month).  Compounding over a year works out at the 35.74%
Card 2 is charging 2.8% per month, compounding over a year is 39.28%

If you want to pay off the highest card first, go for Card 2

Danero

JGB1955 said:

Card 1 is charging 30.93/12 (2.58% per month).  Compounding over a year works out at the 35.74%
Card 2 is charging 2.8% per month, compounding over a year is 39.28%

If you want to pay off the highest card first, go for Card 2

Amazing - ty so much!! 🙏

RAS

Have you done a soft search to see if you can get a 0% balance transfer? Even if no now, worth checking at intervals.

And round up what you pay on the lower card by a couple of quid. The computers notice you are paying more than the minimum, which helps