Can someone please help me come and sort my finances out (credit cards)

[mosschops30]

Ok heres the situation, have just recieved credit card bill which is £700, which to me is a lot. I have another card too with £190 on it. (the £700 one is no interest I get charged on the other one)

Now I pay £50 on the no interest one a month, plus whatever else I can afford. The interest charged one, again is what I can afford.

This month I have about £100 spare. However I also have a secret ISA account which i pretend isnt there with £600 in it. I never use the money it just sits there in case I ever need it.

My question is do i draw about £300 out my ISA and clear one card (the £190) and pay a bit off the other or try and get the big amount down and just make a small payment on the £190.

Its really bugging me I dont know what to do

I'd clear the one you're being charged interest on first.

But I hate the other one being so big, its getting on my nerves but I dont want to use all the money from my ISA to clear cards.

Rationally, the interest you're being charged on a credit card balance will outweigh anything you're earning on your ISA. So you should use your ISA to pay off any balance that you're paying interest on, otherwise you're effectively losing money on your ISA or other savings.

If the card is no interest, then leave the money sitting there until the interest-free period is up and then pay it off.

I know this sounds stupid but it doesnt look great having that much on a credit card though does it?

So i will clear the £190 on the interest charged card and a smaller amount off the other one

i dont think thats alot to have on a cc. pay off the interest one first as you are planning to and pay off the int-free one as much as you can each month.

really?? to me it feels loads, and will just go up again over the xmas season.
Will have to work lots of extra shifts in january to pay for it

Rationally, I agree with the advice given here. But I know what you mean about big numbers. When I left university, I opted to pay back my student loan before I had to, when the interest I was paying on it was less than I could earn in a savings account. Just because I didn't like the big numbers! I don't recommend doing that - I was much more pragmatic with my husband's student loan - but I can understand the feeling

700 is not alot - really. dont panic.

cx

Yes, pay off the one you are being charged interest on straight away, using ISA money as well as spare money. And then....700 is a lot really! If you were to stick the rest of your ISA onto it, would you FEEL a lot less indebted, and would you feel less inclined to put anything more onto the card? Christmas is a bad time to have a credit card...your no interest card by the way, are you sure its no interest for new purchases, not just for an initial balance transfer....I had a no interest balance transfer card that I transferred a load of debt onto, then bought something with the card....only to find the money I spent on the new purchase was charged at 17% interest and I COULDNT PAY THAT MONEY OFF until I cleared all of the balance transfer!

Sorry that probably makes no sense but I dont know how else to explain it. Anyway it was very annoying.

I did the same with a student loan cornflake girl, I paid it off before other debts, just because it was sat there like this big monster and I couldnt relax about it....I did feel more motivated about other debts then to be fair, having acheieved sorting that one out.

ok have paid the £190 off the interest cc today.

The interest free lasts until March (yes daydreambeliever its interest free for the first 12 months which has been great).
So I have 4 months left to pay it, which is £175 which I realistically cant afford per month, but when I do odd extra shifts I can earn and extra £300 in a month so that could be a lump sum to pay off.
If its not clear my March I shall move the balance to another interest free card

well done you, dont panic. you are doing you best to clear it off and im sure you will.

cx