Debt Payments, Next Step Please

It seems to me the biggest danger is that you will not be able to balance transfer to cover all of your Halifax One, and that everything needs to be used to make sure you aren't going to get hit with high interest on that.

So, if I were in your shoes, I would want to use that £4K towards the Halifax, if necessary. But you don't want to use it YET, because Halifax is still at 0%. So if you haven't used a cash ISA this year, I would put £3K into an Abbey Postal ISA, and the rest in another Abbey savings account. You'll use it before long, but might as well get some good interest on it until you do, and by having Abbey accounts you may get a better credit limit when you try for an Abbey card. I don't KNOW that they'll look at that, but it can't hurt. Add your extra available to that savings every month.

If Abbey gives you a high enough limit to take the whole Halifax debt, then you have deferred that crisis for another 9 months, but the 0% offers may dry up for you, so you need to keep an eye on that one all the time, and probably reserve/build your savings towards the end of that 9 months. If not, then the remaining Halifax debt is priority #1, and you need to use your savings and anything extra you can pay to clear it ASAP.

I'm not clear on your Barclaycard situation re: the 6.9%. Is that on the same card that you have the 0% and the 14.9%, or is it a separate debt? If the same, your net rate on that card is about 3.5%, so this is still pretty low priority. If separate, the 6.9% becomes your second highest priority (after the Halifax/Abbey debt), and you might even consider clearing it now, since that might help your credit rating when you apply for a new card.

Not right now, but later, you need to watch the 0% Barclaycard. The net rate you owe on that debt is increasing all the time, but it is still pretty low. The problem is, by paying extra on it, you are paying off 0% debt, which is useless to you, because that is where payments are applied first. So it NEVER makes sense to pay extra on it until those extra payments are cutting into the higher interest debt. If you paid an extra £100 today on Barclaycard, it wouldn't save you any interest at all until years from now!

So again, when it comes time to tackle Barclaycard, you want to start putting the extra payments into savings until you have more than enough to pay all of the 0% debt. The time to take it out of savings and pay it on the card is when the amount of interest you will save on the card exceeds the amount of interest you are earning on savings. Interest on savings is simply the AER times the amount in savings. Savings on the card will be determined by taking total savings, subtracting the outstanding 0% balance, and multiplying the amount that is left by the rate on the card.

Hope that all makes sense....