Suggestions please

Assuming that you get paid at the end of the month, you've got 6 paydays to come before the CC needs paying off, which means you need to be putting £750 a month aside for this. Ideally, just pay the minimum by DD and put the remainder in a savings account as you'll get a bit of interest there.

Is the minimum payment for the CC included in your budget that leaves you the £1500?

There's lots of questions though - is your credit rating good so that you could apply for another 0% card in January?

Would you be disciplined to put the extra in a savings account & not touch it?

Is your current mortgage rate fixed?

It's impossible to try and second guess what will happen to the base rate, although a lot of people do seem to think there'll be at least one more rise this year to 6%, so a tracker might not be the best thing if you're currently on a fixed rate deal.

Personally I'd switch the mortgage, the sooner you can start overpaying, the quicker the mortgage and the interest on it drops, I'd be tempted to put money aside for the CC every month though as this would be earning interest for you at the same time.

Hi steve700

I think I must be reading your post wrong.

You have £1,500 at your disposable each month and from now until January is six months. The new mortgage would allow you to make overpayments of up to £500 and this would leave you with £1,000 a month out of the £1,500, which you can use to pay off the credit card.

£1,000 each month for six month is £6,000 and if we take away from that, the £800 for the re-mortgage, that would still leave £5,200 and the debt on the credit card is £4,500.

As Storm said, if each month you put that £1,000 in a high interest account for the next six months, that money will be making money.

If you then apply for another 0% credit card a couple of months before the current one runs out and you get it with a limit higher then £4,500, you can transfer the balance to your new card.

These days there is a charge for BT’s even if it is a new card. 0% for six months with a charge of 2.5 % followed by a new 0% card with a 2.5% charge for another six months would mean paying 5% in one year. That means the money must be earning more the 5%.

At the moment it is 1.7% for a Capital One card and it lasts until May 2009. If they still have the same offer in Jan 2009, it should last until Nov 2009. Even if your next 0% card had a charge of 2.5%, that would still be less then 2% for a whole year.

Then of course, you are still putting away £1,000 a month. As soon as you have enough to cover the debt on the credit card, put the £1,000 a month into an ISA.

As for the base rate, that has risen several times now and the feeling is that it will go up again. As I understand it, increases are to try to stop house prices from rising too much.

The down side it that people have less to spend or they are more likely to save and in either case, people buy less goods and services. This causes the economy to slow down and if it slows down too much we will have a recession.

Therefore, the big question is how much more it can go up without it causing a recession and the experts are saying once more possibly twice more.

Some are saying that there was no need to have the last rise. House prices are starting to stabilize and that all that was needed was a bit more time for the previous rises to have their full effect.