Which is best to pay off 1st on your (UK)credit cards,the highest intrest or the highest balance?

Question

I have six cards, and don't know which to pay off first.

Answer 1

Highest interest gets you the best return in any country.

Answer 2

I'm a Yank ... think things are the same though ...

neither. For the sake of this discussion, we assume you've stopped spending on all the cards and are only paying them off.

If this is NOT the case, what you do is pay off the smallest one first and then move all your spending onto that card ONLY. Then pay it off every month without fail and follow directions.

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Paying off debt works as follows:

1. determine the absolute minimum that you will pay each and every month. If this is not at least 110% of the combined minimum payments required on all the cards together, then you MUST reduce spending or you'll 'never' get the job done.

Once you have this figure, WRITE IT DOWN, and commit to paying at least this much each and every month without fail. I'd make a sign with this promise on it and post it on my 'fridge -- exactly where I'll see it at least twice a day. Shaving mirror is another good place for a sign with my promise on it.

2. Each card then receives its minimum amount due every month

3. This will leave a balance between the sum of the minimum balances and the amount you agreed to pay each and every month in 1 above -- ALL of this extra is paid toward the card with the smallest balance.

It is critical that you do this because you won't get an emotional pat on the back until you have at least one card paid off. So you need the earliest possible payoff on something in order to generate the willpower to keep going.

{No, we've never met. And you got into trouble with six charge cards, didn't you? I know you just from that -- your willpower isn't always the strongest.}

4. keep doing numbers 2 and 3 until one card is paid off. You'll need to celebrate. One beer is about what this is worth since you have five more cards to go.

5. CRITICAL -- at this point you MUST keep the figure from step 1 exactly the same or even bigger. No backsliding permitted. NONE. And you can't use the now paid off card for anything.

6. repeat steps 2 and 3 until the now smallest card is completely paid off. Yes, you'll notice that the 'extra amount' you're paying solely toward principal each month is now higher -- this is good. You need this to get bigger and bigger over the months or you'll never catch up with the largest card.

7. when this card is completely paid off, retire it with honor and celebrate with a beer. One is enough as you still have the biggest and toughest card to go.

8. repeat steps 5, 6, and 7 until all of the cards are paid off.

9. Now you're done and they're all paid off. I'd probably give in to temptation at this point and have two beers. Do NOT buy a round down at the pub to celebrate -- that'll only start the whole thing over again and then you'd have nothing to celebrate, would you?


cheers,

Answer 3

be a credit card s!ut and consolidate your amounts owing on to a zero balance transfer c/card and pay the admin fee. work out a standard amount that you can pay off every month.
this then will give you at least 12 months interest free. you MUST destroy all your existing credit cards so as you do not end up just adding more debt to your finances.
when you get to the 10 month mark, start looking at transfering the balance of that card to another credit card company at you guess 0% balance transfer and (destroy old card) and start process again. if you are smart you can have 0% finance on your c/c's, as long as you keep paying your monthly amount your credit rating goes up as well.
or go for a lower interest rate loan say 7 - 10 % with a bank or building society and consolidate all your card debt. could work out cheaper and more managable in the long run.

Answer 4

Highest Interest first.
Find out what the interest rates are on each card if you have still have all the paperwork (Or check statements to see how much interest your paying if that's easier) and pay them off in order of the highest interest first.

Answer 5

nicely, beginning an account will decrease your credit besides as last an account too will decrease your credit. in the experience that your stability which you owe on your credit care is better than 0.5 your mastercard minimize, which will quite decrease your credit. So the suitable thank you to extend your credit is considering the fact which you have already got all those credit taking part in cards, spend a touch on each as quickly as, pay it off each month and in case you try this over a era of 6 months, your score will for advantageous go up. in simple terms dont enable the mastercard enterprise charge you interest becuase you basically make the minimal fee. in simple terms charge adequate which you recognize you would be waiting to pay decrease back the quantity in finished (to dodge DEBT) on the top of the month. enable me know if there is something els eyou desire!@

Answer 6

Look at whichever has the largest amount of interest every month, and pay them off from highest to lowest.

Answer 7

Highest interest!!!

Answer 8

high interest ones first.