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    • Biollante21
    • By Biollante21 15th Feb 17, 10:49 AM
    • 65Posts
    • 57Thanks
    Which to pay first
    • #1
    • 15th Feb 17, 10:49 AM
    Which to pay first 15th Feb 17 at 10:49 AM
    Hello all
    Just need some advice on which to pay first
    I have been declined a 0% CC with the Halifax that i was going to transfer part of a balance on another CC to so i don't want to damage my credit rating by applying for another with the possibility of being declined again
    My rating with Equifax is fair but with Noddle it is 2/5 which is below fair
    Anyways i have 2 CCs with balances on

    MBNA with 2400 on 0% until Aug 2019 and Barclays with 5500.00 which i pay interest on

    I have had a nice salary rise which will enable me to pay extra off these and allow me to also save a little bit towards a holiday later in the year
    I have worked out that to pay off the MBNA by Aug 2019 i need to pay 77 and a few pence but i have set up a DD for 100.00 per month
    My B/C asks for 121 per month but i have set up a DD to pay 250 per month
    I have a couple of hundred pounds per month extra that i could pay towards either of these cards

    My question is, as a lot of people on here (inc Martin) say to pay the highest interest rate one off first but as its such a big difference in whats owed would this still be the best thing to do in my circumstances?

    I have a CC with my Lloyds account which is currently standing at a Nil balance that i can balance transfer a figure for 9 months interest free

    Decisions decisions lol

    Thank you for any replies and all advice is greatly appreciated
Page 2
    • Biollante21
    • By Biollante21 10th Mar 17, 4:11 PM
    • 65 Posts
    • 57 Thanks
    Alternatively you dispense with the DD altogether and just make manual payments, but you will need to ensure that they total at least the minimum payment by the due date. More risky but more control.
    Originally posted by zx81
    Now theres a thought
    As the minimum is 121 at the moment (and falling ) and i am planning on paying up to 600 some months then i cannot see how i couldn't meet the minimum
    My next DD is due to be paid on the 21st so i think i will let that get paid and then cancel after that date

    My other cards are quite happy for me to pay extra over and above the DD amount and make it easy to do so but not B/C but as you have said each to its own

    Thanks again zx - very helpful
    • tlc678910
    • By tlc678910 10th Mar 17, 5:56 PM
    • 522 Posts
    • 896 Thanks
    I have a direct debit set up for the minimum for my barclaycard but I often overpay. You are correct if you have made the minimum payment the direct debit is not taken.

    When I budget for the month if I have extra to pay to my barclaycard I make a manual payment (that includes this minimum payment)
    e.g. If I can afford to make a 400 payment to my barclaycard (when the statement has been generated) I log in and make the payment. No direct debit is then taken.

    If I cannot afford to pay extra I leave it alone and the minimum is taken by direct debit.

    My point is that leaving the direct debit in place ensures you never overlook your minimum payment. They only take it if you haven't already paid.

    After you have met your minimum payment (at least) you would be able to make further payments as you like.

    Mind that if you make manual payments before the direct debit is taken all the time (I think perhaps for a year) the direct debit will lapse and you would then be caught out if you relied on it. This happened to me but Barclaycard did reinstate my promotional rate on explanation. So let the direct debit run now and then (as discussed above you can overpay afterwards).

    If you make the payment in the last couple of days before it is due the minimum by direct debit might have already been requested and still be taken so be careful of this but if you pay in good time you can rely on it not being taken.

    • Biollante21
    • By Biollante21 13th Mar 17, 12:40 PM
    • 65 Posts
    • 57 Thanks
    Payment made so i will just now sit back and see if the DD is taken as well
    It doesn't really make any difference if it does as it will just be extra to what i have paid today but i just need to see with my own eyes that if i pay anything extra the DD wont get taken
    Another step closer to getting rid of my CC debt
    • Biollante21
    • By Biollante21 15th Mar 17, 10:33 AM
    • 65 Posts
    • 57 Thanks
    Have B/C changed their way of doing things?
    Even though i have made a payment of 300 a couple of days ago my online account is still saying that my fixed monthly DD of 250 will be taken on the 24th of this month
    • Biollante21
    • By Biollante21 24th Mar 17, 10:28 AM
    • 65 Posts
    • 57 Thanks
    Looked on my online banking and my online B/C account and they have taken the fixed DD of 250 despite me making a 300 payment last week
    No great shakes as it means i have made inroads on the debt and i can at least post my first Milestone in that particular thread and also update my signature
    • enthusiasticsaver
    • By enthusiasticsaver 24th Mar 17, 11:27 AM
    • 6,402 Posts
    • 13,180 Thanks
    I think I would be tempted to get rid of the direct debit and do a standing order every month to the Barclaycard. That means the payments are under your control. Looks like you have made a great start in getting rid of the credit card debt though.
    Debt free and mortgage free and early retiree. Living the dream

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    • Biollante21
    • By Biollante21 24th Mar 17, 1:58 PM
    • 65 Posts
    • 57 Thanks
    I am very tempted to cancel the D/D and just make manual payments
    I am one of those people who like to see the figure that is owed reduce as many times as possible in a month as it just gives me an incentive
    As i have my Lloyds C/C at a nil balance and an offer of 9 months 0% balance transfer on it i can move the B/C debt over once i have the balance down below 2700
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