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    • moneycantbuyyouhappiness
    • By moneycantbuyyouhappiness 31st Jul 18, 3:17 PM
    • 170Posts
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    moneycantbuyyouhappiness
    What to Pay off first
    • #1
    • 31st Jul 18, 3:17 PM
    What to Pay off first 31st Jul 18 at 3:17 PM
    I need some help decided what to pay off first.

    Card 1 - Balance 3680 - Limit 7700 - 0% until June 2021 - Minimum payment 2.25%
    Card 2 - Balance 5221 - Limit 6200 - 0% until March 2020 - Minimum payment 1%
    Loan - Balance 5489 - Monthly Repayment 219.58 Last Payment August 2020

    I currently have about 260 a month to pay off the credit cards and this will obviously increase once the loan is paid off.

    My initial thought is to BT as much as possible to Card 1 and pay the minimum on this Although the minimum payment would start off fairly high 175 per month, and focus the other 85 on getting the CC2 gone before the 0% ends.

    Any advice?
Page 1
    • CornishOptimist
    • By CornishOptimist 31st Jul 18, 4:29 PM
    • 36 Posts
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    CornishOptimist
    • #2
    • 31st Jul 18, 4:29 PM
    • #2
    • 31st Jul 18, 4:29 PM
    Seems to me that's a fairly sensible thing to do. try and get your debt payments on the longest BT possible and get the remaining 85 gone from CC2 asap.


    Would paying the minimum on CC1 for now and paying extra on the loan be possible without penalty? The loan will have %APR whereas CC1 wont until June 2021. Getting that loan and CC2 paid off quicker will give you more disposable cash to get CC1 paid off once their both gone


    CO
    • moneycantbuyyouhappiness
    • By moneycantbuyyouhappiness 31st Jul 18, 5:30 PM
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    moneycantbuyyouhappiness
    • #3
    • 31st Jul 18, 5:30 PM
    • #3
    • 31st Jul 18, 5:30 PM
    Thanks CO

    As far as I'm aware I can do that. I'm sure there's no penalties. The APR is quite low from what I can remember.

    Thank's for that I'll have a play around with the spreadsheet to see if that makes much of a difference.

    I've done the balance transfer now and set up my minimum payment direct debits I can pay of the additional at the end of each month.

    Thank you.
    • enthusiasticsaver
    • By enthusiasticsaver 31st Jul 18, 9:57 PM
    • 7,182 Posts
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    enthusiasticsaver
    • #4
    • 31st Jul 18, 9:57 PM
    • #4
    • 31st Jul 18, 9:57 PM
    I am not sure why you balance transferred now considering you have a further 2 years to go before the deal expires. The rule is you balance transfer on the lowest balance to keep the fee low. You should have paid down as much as possible on card 2 until February 2020 and then balance transferred if there was any left.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • enthusiasticsaver
    • By enthusiasticsaver 31st Jul 18, 10:02 PM
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    enthusiasticsaver
    • #5
    • 31st Jul 18, 10:02 PM
    • #5
    • 31st Jul 18, 10:02 PM
    So if you paid 82.60 as minimum on the card 1 and put the remaining 177.40 per month to card 2 the balance in February 2020 would be around 1850. Unless you have managed to balance transfer without a fee the fee on 1850 would be a lot less than a fee on 5221.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • moneycantbuyyouhappiness
    • By moneycantbuyyouhappiness 1st Aug 18, 11:50 AM
    • 170 Posts
    • 333 Thanks
    moneycantbuyyouhappiness
    • #6
    • 1st Aug 18, 11:50 AM
    • #6
    • 1st Aug 18, 11:50 AM
    Thanks enthusiastic saver. Solid advice.

    I probably didn't make myself very clear.

    CC2 around half of the balance is 0% (that ends 2020) the other is spread over money transfers and purchases. There's around 1250 on a money transfer interest free rate that expires in two months. I wasn't paying interest at the moment but would be very soon.

    CC1 was taken out recently and gave me a promotional fee of 0.55% for balance transfers, hence why I did it.

    From a moral perspective it does help me feel less daunted on tackling the smaller amount first.
    • MoneyManBene
    • By MoneyManBene 7th Aug 18, 4:14 PM
    • 4 Posts
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    MoneyManBene
    • #7
    • 7th Aug 18, 4:14 PM
    • #7
    • 7th Aug 18, 4:14 PM
    I would prioritise by 0% amounts. Aim to pay off which ever has the highest % first.

    Approach your bank to see if any consolidation options are available to yourself? doing an affordability assessment you can take out the monthly CC payments if you are about to pay them off. This allows the total debt to be covered by a loan and one single payment. The AAF is normally ok, it all depends on how your credit file is looking after having a large amount of card debt.
    • Willing2Learn
    • By Willing2Learn 7th Aug 18, 4:21 PM
    • 1,585 Posts
    • 1,207 Thanks
    Willing2Learn
    • #8
    • 7th Aug 18, 4:21 PM
    • #8
    • 7th Aug 18, 4:21 PM
    I would prioritise by 0% amounts. Aim to pay off which ever has the highest % first.

    Approach your bank to see if any consolidation options are available to yourself? doing an affordability assessment you can take out the monthly CC payments if you are about to pay them off. This allows the total debt to be covered by a loan and one single payment. The AAF is normally ok, it all depends on how your credit file is looking after having a large amount of card debt.
    Originally posted by MoneyManBene
    https://forums.moneysavingexpert.com/showthread.php?t=5567669
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

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