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How to distribute payments between accounts


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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!
 

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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... 

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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. 

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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. 

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