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which one to clear first

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  • 27-01-2013 11:34am
    #1
    dollyk
    Registered Users Posts: 602 ✭✭✭


    Hi can anyone tell me would it be better to use my overdraft to clear my credit card. ? both are 2 thousand euro. thanks


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    #2
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    dollyk wrote: »
    Hi can anyone tell me would it be better to use my overdraft to clear my credit card. ? both are 2 thousand euro. thanks

    Which one are you paying more interest on? Always clear the one with the highest interest first


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    #3
    dollyk
    Registered Users Posts: 602 ✭✭✭dollyk


    Im not sure how much on overdraft, but credit card is 28.00 euro a month interest. so maybe thats the one to clear...thanks for reply.


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    #4
    GerardKeating
    Registered Users Posts: 7,650 ✭✭✭GerardKeating


    dollyk wrote: »
    Im not sure how much on overdraft, but credit card is 28.00 euro a month interest. so maybe thats the one to clear...thanks for reply.

    Most all Credit Card rates are way higher then overdraft rates, assuming it is an authorised over draft.

    So the general rules would be to clear the highest rates first, but if one of them is over the limit, you might clear that first.


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    #5
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    dollyk wrote: »
    Im not sure how much on overdraft, but credit card is 28.00 euro a month interest. so maybe thats the one to clear...thanks for reply.

    You're best bet would be to ring the bank and find out what the interest rate is, the percentage being the important part.

    Also there are credit cards that offer you a number of months interest free.
    So if you were to switch to one of those credit cards, you can move the balance there and pay no interest on the balance. It would give you a bit of breeding space to clear the overdraft and the credit card.
    http://www.bonkers.ie/compare-credit-cards/your-results/


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