Pay off smaller debt then larger debt?

Toastie

I was using the Minimum Repayments calculator on my two Credit Cards.

Morgan Stanley - £2000 asking for roughly £60 Per month at 19.2%
Tesco - £4000 asking for roughly £115 Per month at 16.62%

According to the calculator:

Morgan Stanley - 3 years 11months to pay off
Tesco - 3years 11months to pay off

Surely paying off Morgan Stanley would be better for me because then i can concentrate higher payments for a longer period on Tesco? I generally have an extra £25-75 per month too pay off on top of these but which should i pay off first?

chuckley

i agree, pay off whichever is more managable.

Toastie

Yeah.

I just read another thread saying that if i pay with a cheque in order to balance transfer the APR on the card will go up to the transfer rate? Or something like that? Or am i wrong?

I so then i've made things worse because i transfered £1000 of debt from Capital One to the Morgan Stanley Card.

CLAPTON

pay off the maximum you can on the one with the highest APR (i.e. morgan stanley) and the minimum on the one with the lowest APR..

CannyJock

CLAPTON wrote: »

pay off the maximum you can on the one with the highest APR (i.e. morgan stanley) and the minimum on the one with the lowest APR..

Any chance of getting a new 0% card and balance transferring the 6K onto it and then paying it off from there?

EDIT: Ah wait, is this where the Capital One card comes into the equation? If it's a 0% balance transfer offer then transfer as much as you can onto it and do as Clapton says - pay max from highest interest and min from the rest. If it's not 0% then how does it fit into the situation?

Toastie

CannyJock wrote: »

Any chance of getting a new 0% card and balance transferring the 6K onto it and then paying it off from there?

EDIT: Ah wait, is this where the Capital One card comes into the equation? If it's a 0% balance transfer offer then transfer as much as you can onto it and do as Clapton says - pay max from highest interest and min from the rest. If it's not 0% then how does it fit into the situation?

I couldn't get a new credit card to transfer debt. I applied to Halifax but they said no. I can't get a virgin card either so i think i will try again in a couple of months.

I transfered £1000 from Capital One (they charged me about 24% interest a year) to Morgan Stanley which also had £1000 on it.

Sorry about being confusing.

Tra77

Toastie - Try 'snowballing' on www.whatsthecost

Toastie

That's really helpful thank you very much.

vickym

Tra77 wrote: »

Toastie - Try 'snowballing' on www.whatsthecost

I totally agree with this suggestion - its a great site

xx

UK007BullDog

If you cannot move the money to a 0% card then pay off the one with the highest rate and the other one just make minimum payments.

UK007BullDog

To aid your move to a 0% card, get your credit file for £2 and close down all cards you have with a £0 settled account. Maybe you have too many cards out there which you are not aware of also to check in general to find out why you were refused.