Pay high interest card or wait and get a balance transfer?

Options
souloho
souloho Posts: 4 Newbie
in Credit cards
I've been with my current employer 2 months where I'm earning more money than I was previously and I have applied for a credit card within the last 12 months when I was on my old salary. I understand I should probably wait 4-6 months before applying for another balance transfer card.

I'm trying to clear the debt on my current credit card of which I'm paying 25.95% interest. Does it make sense to save as much as I can for 4-6 months, try to get a balance transfer than use the saved money on a new 0% credit card while paying the minimum on the current credit card. Or should I throw everything I can at my current credit card? Will it make a difference?

Comments

  • grumbler
    grumbler Posts: 58,629 Forumite
    Name Dropper First Post Photogenic First Anniversary
    edited 31 July 2014 at 11:06PM
    Options
    souloho wrote: »
    .....Does it make sense to ....try to get a balance transfer than use the saved money on a new 0% credit card ....
    Not to me...


    Ignoring this, what's the point in paying high interest rate and saving at the same time? You can't keep transferring the balance forever. Pay as much as you can, then transfer the balance, keep saving while 0% lasts, then pay the balance off.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    Combo Breaker First Post
    Options
    souloho wrote: »
    I've been with my current employer 2 months where I'm earning more money than I was previously and I have applied for a credit card within the last 12 months when I was on my old salary. I understand I should probably wait 4-6 months before applying for another balance transfer card.

    I'm trying to clear the debt on my current credit card of which I'm paying 25.95% interest. Does it make sense to save as much as I can for 4-6 months, try to get a balance transfer than use the saved money on a new 0% credit card while paying the minimum on the current credit card. Or should I throw everything I can at my current credit card? Will it make a difference?



    no point paying 25.9% on your debts if you have savings earning say 1%
    pay as much off on the CC as you can




    no harm in applying for a 0% BT card too.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards