Credit card and other debts

[Talkinpeace]

I'm not the first to say this, but I will repeat it...

Do you have a credit card or payment agreement on which you are paying the minimum?
How much did you pay last month?
So, you afforded that.
Set up a STANDING ORDER for that amount.
Cancel the direct debit.
Very soon you will be paying off CHUNKS of what you owe with little / no pain to you.

If you do it their way, they get their Ferrari
If you do it my way they get a Ka

No brainer

Explain why please, as you'll still be paying them.

Is it because the direct debit will drop as the balance drops, but the balance will drop faster if the payments stay the same?

I know what I mean

That's it... Martin Lewis has an example on his MoneySavingExpert site. Because the minimum payment is usually 2% of the balance, as the balance comes down the amount you're paying each month comes down as well. Result - it takes a long, long, long time to get it down to zero. If you pay off the same amount each month the balance comes down a lot quicker.