Which Credit Card to Pay Off First

Track spending and attack high interest cards to boost debt repayment

RUNCORN, England — As credit card debt has become a way of life for millions of individuals across the United Kingdom, many debtors have found themselves with a wallet full of different credit cards needing to be paid off. Each card carries a different interest rate, different payment address and different minimum payment making it difficult for many individuals to stay on top of their monthly obligations. But when looking to develop a plan to rid yourself of credit card debt, what is the smartest way to begin?

"The first thing anyone needs to do when developing a plan to pay off credit card debt is to track their spending for at least one month to find out where their money is going," said Steve Rhode, chairman of Myvesta UK, a not-for-profit money management organisation. "After determining how much money there is each month to send to creditors, send the largest payment to the credit card with the highest interest rate and pay the monthly minimums on the rest. After the highest rate card is paid off, move those funds to the next highest card. Continue to do this until all the cards are paid off."

According to Rhode, when people fall behind on their bills it's not always because they don't have enough money to cover their expenses.

"Quite often it's a problem of organisation, motivation and time," he said. "People simply don't have the necessary skills or are too busy to effectively put together and maintain a payment plan on their own. That's where our AllPaid program steps in. We take over the responsibility of handling the bills and are able to reduce debt faster than people can do on their own."

For more information on Myvesta UK's AllPaid program, or to access free online calculators to assess your debt, visit Myvesta.org.uk online. Individuals can also call free on 0800 1116 885 for free advice and information.