Who do I pay off first?

CannyJock

Nice one.

Read this article that Clariman wrote - won't all apply to your situation, is really aimed at what to do when you've got a nil balance, but maybe some tips in it: http://www.makesenseofmoney.co.uk/a_extend.html

If you've got any available credit left on your credit cards, phone them and tell them that you'd like to transfer a balance but you'd need an attractive rate to make it worth doing (starting with your lowest APR card with the intention of transferring from your highest APR cards). Ask them to increase your credit limit if you need to.

Hopefully a few phone calls and at least one of them will make you an offer that allow you to transfer the highest debt onto lower APR. You'll probably have some residual interest to clear off the other cards, but once you get a £ nil balance statement, call and cancel the cards if you don't trust yourself not to go on a spending spree.

Of course, once you've got a nil balance you can wait a couple of weeks, re-read the above article and phone them to ask for a deal to shuffle your debt onto even lower APR

EDIT: You mention a few debts and cards, if you've not already, then definitely check the free trial from Experian for your credit report - check that you don't have some cards sitting there that you thought were settled (like the one with the £250 you mention). Remember to cancel the Experian subscription before the 30 days runs out or you'll be charged £6.99 a month.

CravingSaving

Blimey CannyJock, you certainly know your onions dont you?! Thanks for the link.

Oh, and I had Experian Credit report last month, so know where I am with that. Thanks again.

Lorne

I can't recommend whatsthecost.com high enough. It really has provided me with focus and figures in black and white that makes me feel like I'm moving forward on our debt free journey.

Good luck!

Idiophreak

CravingSaving wrote: »

I initially asked for just £500 from my worst debt as I thought I would only get a low limit if I was accepted at all. I think I will stick with that, as I know I can pay that off in the 13 months.

Not sure I understand this...It's not the 0% stuff you wanna be paying off, it' the rest of it....

You've just gotta take quite a black and white view on it...work out how much interest you'll pay clearing the worst card in 13 months - then work out how much it'd cost to do the balance transfer (2.5%)...If the transfer's cheaper, do it...fairly sure that at 19.9%, unless you're going to pay it off in a couple of months, it's going to be cheaper to do the transfer.

Worst come to worst, the tesco APR is normally 15.9 - so you'll save 4% on your worst debt after the interest free period runs out anyway (assuming you don't BT it again)...

Just food for thought, anyway

CravingSaving

Idiophreak - I know, I talk double dutch at times! I wont be paying off the £500 @ 0% initially, but I might be in a position to do so at the end of the 13 months, then, if I follow advice above, I might be able to blag an extension to the 0% and transfer other debt back to it. Now that I know what credit limit they have given me, I may as well transfer as much as possible over to it I guess .

As you say, worst case is that I end up paying the 15.9%ish at the end of the 13 months, which is better than I am getting at the moment. One of my fears is that, as has happened with some other debts that started out on 0%, at the end of the term, the rate was reasonable, but within 3 months soared from around 15% to 20% which has really stung.

Still a bit foggy about it all so I really appreciate everyones help and advice!