Say you have:
£400 Overdraft
£500 Credit Cart
£500 in cash
Is it best to clear the Overdraft and make the min payment on the CC for a couple months or pay off the CC and leave the OD? Im thinking paying off the overdraft then paying off £100 of the CC is best because it gives me that cushion back.
The best move financially will depend on the interest rates youre being charges on the OD vs the CCd.
pay the CC off
As sexytw said it should be based of interest rates etc but personally I would pay off the CC and be done with it then work on the OD :)
pay off the one with the higher interest rate......which is probably the CC
Sometimes the OD has charges, if it does then it might just push it a bit higher than the card. If so pay that off.
IF not pay the CC.
Pay off the one thatll cost you more to have firstly.
If the OD is interest free then leave that and pay off the CC (assuming that has higher interest)
Also weigh up if the OD has service charges if they come to £30 is that more than the credit card would charge you in one month?
Like everyone else is saying pay off the one that costs you more over time.