I think I know the answer to this...

Lilly11a · 7 May 2014 at 8:22AM

At the end of the month I'm getting a £2000 bonus so £1160.00 after tax and ni.

I owe £1850 on NatWest credit card interest free until August 2015. No other debts apart from mortgage. I am on track to clear this by August 2015

Have £500 saved in a zopa account( put £50 a month as long term ish savings).

Generally have £500 a month to play with so plan was this month £200 bill (one off 4 times a year) £50 zopa £150 savings (short term currently £0) £100 credit card. This is in addition to the bonus.

What would you do with the extra £1160.

My tv in bedroom is broken and I would like to buy some tiffany earrings ( I know but I did work 36 hours non stop to get the bonus). This would cost circa £350 total

Would you
pay all off credit card?
some off card, some into savings?
get tv and earrings , then some into savings and some off cards?

Thanks for reading

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[Deleted User] · 7 May 2014 at 8:29AM

How much will be left on the CC, when the 0% finishes, and what will the APR go to then?

What's the APR on the mortgage?

indesisiv · 7 May 2014 at 8:31AM

I'd be tempted to pay it all off the credit card.
You have the money spare each month anyway, once you are debt free you can easily save and buy the earrings. Then you can enjoy them even more because you are debt free. :j:j

Lilly11a · 7 May 2014 at 8:33AM

credit card interest free until August 2015 - it should be paid off in any case if I jut carry on as normal ( £100-£200 off a month depending on other bills)

mortgage 4.49% but I would like an emergency fund so not interested in over paying till I have at least £2000 saved

[Deleted User] · 7 May 2014 at 9:18AM

Lilly11a wrote: »

credit card interest free until August 2015 - it should be paid off in any case if I just carry on as normal ( £100-£200 off a month depending on other bills)

I thought you meant the mortgage would be paid off.

I'd put it in a savings account.

That way, you get interest, and it doubles as an Emergency Fund.

AndyBSG · 7 May 2014 at 9:24AM

If the credit card is interest free then i'd just stick the money in savings, earn interest on it then use it to pay the card off next August if you haven't already cleared it.

Pointless clearing a card that you're not paying any interest on if you can use the money elsewhere.

asparagus1968 · 7 May 2014 at 10:11AM

as long as you will definitely pay off CC before you 0% ends I would get thr tv and earrings, put the rest in savings.
but then I'm no angel.

GettingOrganised · 7 May 2014 at 9:48PM

Same as above - get your TV and earrings and then save the rest.

nolongerindenial · 8 May 2014 at 1:24AM

All off the credit card

All off the credit card, 0% interest or not its still a debt and as such should be paid off first..

charmedlassie · 8 May 2014 at 4:19AM

Id say buy a new tv and put the rest to the CC. Much better to pay off anything that's taking away disposable income at the end of the month! Then once you're debt free you can treat yourself to the earrings guilt free!

phillw · 14 May 2014 at 2:34PM

You shouldn't be paying off your credit card at all. At least match what you've got outstanding on the credit card in a 5% current account. Then start spending on a 0% on new purchases card and keep matching that too. Your emergency fund is then the 0% credit card.

I wouldn't have a tv in the bedroom as it can mess up your sleep pattern, but a modern phone/tablet can be used for watching most programmes now. If you really need a TV then a second hand tv from the paper or supermarket advert would be better. As for the ear rings, I guess you need to decide how much it will enrich your life to have them.

I think I know the answer to this...

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