When deciding how much to repay on your credit card you might think that paying back £1 a day more would make little difference. But it could have a big impact.
Imagine again that you have an outstanding balance of £2,500 on a card with a 28.9% annual interest rate. If you only paid the estimated minimum payment of £78 each month, it would take 26 years and 11 months to clear it, costing £5,009 in interest.
But by increasing your repayments to a fixed payment of £108 each month, you’d be debt free in 2 years and 9 months and pay £4,022 less in interest.
If you’re currently paying interest, then a balance transfer could be another way to clear your balance much sooner.
"Moving your existing balance to a Barclaycard credit card that offers a 0% interest promotional period can make your monthly repayments more affordable."
Although there’s usually a fee for moving your balance, a balance transfer credit card with an interest-free offer can be a great way to avoid interest payments and focus on clearing your balance as quickly as possible.
Learn more about how balance transfers work
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