Jump to content


How to distribute payments between accounts


style="text-align: center;">  

Thread Locked

because no one has posted on it for the last 303 days.

If you need to add something to this thread then

 

Please click the "Report " link

 

at the bottom of one of the posts.

 

If you want to post a new story then

Please

Start your own new thread

That way you will attract more attention to your story and get more visitors and more help 

 

Thanks

Recommended Posts

I imagine this is quite simple to answer for anyone on here :)


I have 4 CC accounts

1 - Balance £0 (limit £2750)
2 - Balance £2000 (limit £4000)
3 - Balance £2500 (limit £2600)

4 - Balance £4000 (limit £4000) new zero percent interest for 18 months

I recently opened account 4 and transferred the balance from 1 and some of 2

I have £2000 to pay off some of these debts.  

My credit report is good, but I have a warning that credit utilisation is over 75% on some accounts. 

Should I;
Use the funds to reduce balance of 2, or 3 (higher interest) or
use £800 to reduce the zero percent card down  (4) to 75% and then the remainder on card 2 or 3?


I realise that the most efficient use of the funds would be to reduce the balance on the higher interest cards, but from a credit score perspective, would it make much difference to have all accounts under 75%? (and I may then be able to take out another balance transfer card?)

Thanks!
 

Link to post
Share on other sites

at some point all the interest free periods are going to end.

 

to keep transferring and/or keep opening more interest free cards to avoid the future big hole you will eventually fall into, when something untoward happens or periods start to end ... is a very bad financial plan.

 

 

 

 

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

Link to post
Share on other sites

20 minutes ago, dx100uk said:

at some point all the interest free periods are going to end.

 

to keep transferring and/or keep opening more interest free cards to avoid the future big hole you will eventually fall into, when something untoward happens or periods start to end ... is a very bad financial plan.

 

 

 

 

I agree with dx..

 

If this were me, I would be making payments to the higher interest cards first.  If you do not close the card with the 0 balance, this will keep your credit utilisation showing as lower.. Just make sure you do not spend on it.  Cut it up !!  Once you have repaid some of the other cards down then you could perhaps close it totally.  Make minimum payments on the interest free card until such times as you have paid down or paid off the other two where interest is being charged. 

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

 

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

Link to post
Share on other sites

Thanks both, that sounds like sound advice and exactly what I'm going to do. 

 

I got a well timed tax rebate 2 days before Christmas, and I'd also realised I'd been overpaying the electricity, so was nearly £1000 in credit with ovo. 

 

 I've cleared all the cards except the zero percent interest card, which is now at 50%.

 

I'm going to up may payments to £350 a month so it will also be cleared quickly. 

Link to post
Share on other sites

 Share

  • Recently Browsing   0 Caggers

    • No registered users viewing this page.

  • Have we helped you ...?


×
×
  • Create New...