Use savings to pay off credit cards?

gailv0

Is it a good idea to use up some of (small amount) of savings to pay off some balances on credit cards(varying interest rates)? Or is it better to hold on to a bit of savings and pay off what we can off the cards?

emma396

unless cards are interest free, its likely rates on cards will be higher than your savings rates, so pay off cards! start with the highest rate and work your way down.

lilac_lady

Pay off the cards. It'll feel so good not to have debt on them. They should be called debt cards, not credit cards.

dhassen

if the rate of interest on your savings is less than the rate of interest you are paying on any of your cards, then you are wasting money. Pay em off! Sureley it'll be nicer to have savings and no debt?

gailv0

Thanks, I was clinging onto the rainyday savings but am clearly wasting money on interest, so will look at the credit cards as my 'rainy day' and reduce the balances.

dhassen

good idea gail.........

When you've paid them off, then start saving eh

exel1966

Before paying the debts, establish whether you can get a new 0% fee free BT card and shift as much debt as possible onto that card leaving your savings to accrue interest (stoozing).
If that's not an option definately clear debts first if the APR is higher than the AER you have on the savings account.