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Original poster

what should I pay off first?

22 replies

MrsSnape · 06/04/2008 23:29

I get £70 a month spare that is not budgeted for. It normally goes to waste so I've decided to pay something off...

There are 3 choices....

Water bill...if I paid this off I would have £10 a week extra for the rest of the year which would come in handy. This would take 3 months.

Credit Card...high APR (34%), high monthly payments...if I paid this off I'd save in interest and the monthly payments would reduce. to pay it all off would take 4 months.

Catalogue...would only take 2 payments to get rid off so I could lose this in 2 months...

What should I do?

OP posts:
ShinyPinkShoes · 06/04/2008 23:30

Credit Card

KatyMac · 06/04/2008 23:30

Credit card - you should always pay the highest interest first to save paying the interest

Original poster
MrsSnape · 06/04/2008 23:31

Thats what I'm thinking too, for every payment I make half of it is going back on in interest so it never seems to go down.

OP posts:
FAQ · 06/04/2008 23:31

Credit Card, then the Catalogue, then the water.

peanutbear · 06/04/2008 23:31

credit card because you are paying high interest

KatyMac · 06/04/2008 23:31

Then catalogue
Finally water bill

ShinyPinkShoes · 06/04/2008 23:32

The interest rate is so horrific hence my quick answer! You'll feel like a weight has been lifted once it's paid off

KatyMac · 06/04/2008 23:33

Can you not get a 0% credit card deal?

BecauseImWorthIt · 06/04/2008 23:33

Always the credit card!

Original poster
MrsSnape · 06/04/2008 23:34

No I can't get a credit card with anyone else...I only got this one to boost my credit rating but ended up spending and not paying

Its capital one...they'll give anyone a card lol (I'm not even working)

OP posts:
Feelingbetterslowly · 06/04/2008 23:35

Credit card! Just paid mine off (been paying interest only for 4 years!!) but weight still hasn't lifted yet-but will next month when I have £100 spare!

purpleduck · 06/04/2008 23:40

yep
credit card
catalogue
water bill

or keep paying the water bill and put some away for savings...

Original poster
MrsSnape · 06/04/2008 23:43

well I'll be paying the water bill in the meantime anyway (and the catalogue) so in the 4 months it will take me to pay the credit card, half of the water bill will be paid and almost half of the catalogue.

OP posts:
Califrau · 06/04/2008 23:44

This reply has been deleted

Message withdrawn at poster's request.

Original poster
MrsSnape · 06/04/2008 23:47

I know, I didn't even realise how bad it was

My minimum payment last month was £17 and £8 went back on in interest

OP posts:
ScienceTeacher · 07/04/2008 07:15

Pay off the credit card and then cut it up.

BecauseImWorthIt · 07/04/2008 09:48

Cut it up now! And then pay it.

ScienceTeacher · 07/04/2008 09:48

Of course, BIWI!

BecauseImWorthIt · 07/04/2008 09:53
Grin
Original poster
MrsSnape · 07/04/2008 09:55

lol so we're all agreed on the credit card then?

Thing is, I don't really want to get rid of it as I'm using it to boost my credit rating. I as told that by cancelling the card this would go down as a good thing on my credit report?

Anyone know how true this is?

OP posts:
KerryMum · 07/04/2008 09:56

This reply has been deleted

Message withdrawn at poster's request.

BecauseImWorthIt · 07/04/2008 09:57

Cut it up but don't tell them you're cancelling it. Just stop yourself using it again. Really. Please, please do it!

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