Sensible credit card use

Doodah79 · 20 November 2017 at 6:08PM

Hi. New to forum so be gentle!
Husband and I are good earners but recently incurred an unexpected debt we are struggling to pay. Decided to apply for a 0% cc and got accepted for 28months at 0% with a really high limit which will allow us to pay off the debt with plenty of credit left over.

We have a lot of equity in our house and would like to move but need to do the house up first. Thinking of using the card to clear all other debts, finish doing house up to sell and clearing the card with profits from house. If we used the card for a few months to do this and only paid minimum payment during that time until we sold up and cleared it, would that go against us in any way?

[Deleted User] · 20 November 2017 at 6:11PM

Minimum payments are ok while on a promo, as lenders see the promo marker.

Doodah79 · 20 November 2017 at 6:15PM

Ok - so does this sound like a good way to help us unlock the equity in our house, move and clear all our debts?

redpete · 20 November 2017 at 6:28PM

Yes, but what happens if the work costs more than you expect, or takes longer then you expect, or it takes longer to sell than you expect?

[Deleted User] · 20 November 2017 at 6:29PM

You're relying on a house sale to clear the card.

You need an exit plan if you don't sell before the balance goes to the standard APR.

If you're good earners, you need to develop a savings strategy, so you're not reliant on credit, but instead make it work for you.

Another consideration is that you may not get a promo offer if you're carrying significant debt elsewhere.

Doodah79 · 20 November 2017 at 6:45PM

We’ve already been accepted for the card and got the promo offer of 0% for 28months. All the work on the house is simple cosmetic stuff - one room needs plastering, need a few carpets and stair rail needs replacing. Nothing structural. Totally agree about an exit plan - if the house didn’t sell quickly, we would have around 2 years before the APR kicked in and in that time we could make bigger payments.

Sncjw · 20 November 2017 at 8:37PM

You say to pay your debts you have now. What kind of debts are these as you probably need money transfer for those

Doodah79 · 20 November 2017 at 11:41PM

Wouldn’t use money transfers. Would pay the debts with cash from the bank but use cc to cover the resulting shortfall and pay bills etc

Sncjw · 21 November 2017 at 8:47AM

Remember to pay the minimum payment each month or you will loose the 0% offer.

I don’t think many would agree with this as it seems your in a fair bit of debt and your going to get into more debt.

How much are your debts and how long do you expect to take to pay them

RG2015 · 21 November 2017 at 9:16AM

You say your new card will allow you to pay off your debt. Is this debt with a company that accepts credit card payments?

Edit: I have just seen that you have already answered this.

RG2015 · 21 November 2017 at 9:33AM

0% interest on purchases for 28 months with a high credit limit is a good deal as long as you are disciplined. And you absolutely must set up a direct debit for the minimum payment!

I have a 0% on purchases credit card and I am paying everything on this. My DD pays the minimum but I check the balance every month as it is easy to forget that a large balance is building up and that it must be paid off before the promo deal ends. I also intend to request a credit limit increase to maximise the benefit to me.

My only concern for you is that having had one large unexpected debt that you may suddenly get another that messes up your plans.

Sensible credit card use

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