what should I pay off first?

miyagi

Hi all, I have some savings that I want to use to pay off some credit card and bank overdraft debts but I'm unsure on what to pay off first. I would really appreciate your opinions on a suitable strategy.

I have £4841 to spend on:

Current a/c O/D £1800 (apr 18.36% Natwest)
Current a/c O/D £1000 (meant to be house account! same apr 18.36%)
Credit Card Morgan Stanley £3694.11 (Apr 20.9%)
Credit Card MBNA £2400 (Apr18.9%)
Credit Card Natwest £602 (Apr 20.9%)
Credit Card Tesco £607 (Apr17.42%)
Credit CArd Halifax £467 (Apr 14.64)

Should I pay off one card and consolidate the rest of the debt or should I look to redress my current accounts? I currently pay £140 per month off all the credit cards and my husband says he can find another £60 to make it up to £200. How am I best to tackle these debts? I have at last realised that I should use my savings I now want to have a strategy in place for peace of mind!

Ever grateful and wishing everyone success with ridding their debts!

headinthesand_3

Hi,

I'm not great at this but the way I see it you should clear your Morgan and your natwest as they are the highest intest, and also your Halifax, then cut up those cards, you will have also got rid of 3 debts

Then Transfer the rest onto 0% cards and use the £200 to cut chunks off them, you can put your OD on a 0% card, virgin is quite good

Also after paying off those cards with your savings you will have £77 left, so treat yourself to a meal or similar as a well done for getting rid of 3 debts

I must stress it is important that you pay off the cards then DESTROY them!!! Trust me I have been there you will only spend on them again

Sea78

Destroy them and also completely cancel them!!

Sounds like a good plan to pay them off and then concentrate on the others with the money you've now got from not having to pay those off..

Sea xx

Kylie

Don't cut them up - write to these companies and CANCEL them. Cutting them up won't help! The rest of headinthesand's advice looks sound. xxx

Read up on "snowballing".

RAS

Can you advise what the limits are on those cards?

it might be possible to reduce your interest payments slightly.

And go to www.whatsthecost.com to pay with the snowball.