Pay in Full or not?

Staciep88

I currently have an Egg card which is 0% for 12 months and i transferred 2 balances; one from Capital One and one from Natwest totally approx £475.

I have this money in me new e-savings account (natwest - I only took this out becuz of the £50 cashback).

So what I was thinking was if I paid this off in full when it is due, which I could do comfortably, and then my partner could use this card to transfer abit of his debt to (see sig) as we are in the process of getting all his debt over to 0% BT cards, and still have £3k to go!! :eek: I know its not a great a deal but knocking another £475 from the high interest card (30% APR) should free up a little more money each month.

What are your thoughts?

nomoneytoday

Pay off the most expensive debts first

Staciep88

in order to do this i would need to free up the egg card at 0% - i know i would feel better knowing I have no monthly outgoings (apart from the car)... or is there a better way of doing this?

exel1966

Staciep88 wrote: »

I currently have an Egg card which is 0% for 12 months and i transferred 2 balances; one from Capital One and one from Natwest totally approx £475.

I have this money in me new e-savings account (natwest - I only took this out becuz of the £50 cashback).

So what I was thinking was if I paid this off in full when it is due, which I could do comfortably, and then my partner could use this card to transfer abit of his debt to (see sig) as we are in the process of getting all his debt over to 0% BT cards, and still have £3k to go!! :eek: I know its not a great a deal but knocking another £475 from the high interest card (30% APR) should free up a little more money each month.

What are your thoughts?

Not quite sure I'm understanding where you have your cuurent funds.
Is your EGG limit high enough to have the £475 on it and the additional £3k ? If so have put it all onto EGG and just pay the monthly minimum, leaving he surplus to accrue interest in your savings account. There's no need to pay it early when you don't have to.

Also remember that once you transfer his debt to your card, you solely become responsible for it should anything happen.

Staciep88

exel1966 wrote: »

Not quite sure I'm understanding where you have your cuurent funds.
Is your EGG limit high enough to have the £475 on it and the additional £3k ? If so have put it all onto EGG and just pay the monthly minimum, leaving he surplus to accrue interest in your savings account. There's no need to pay it early when you don't have to.

Also remember that once you transfer his debt to your card, you solely become responsible for it should anything happen.

I have over £1k in my e-savings account - its not a high interest account its just one that gives £50 cash after 12 months of putting £100 per/month, you dont have to keep it in there though. I was reading martin said to pay of debts with savings so thats why the question come up really.

My egg card only has £500 limit on it, so I could pay off my balance and then transfer £475 from the current £3k credit card at 30% to the egg card at 0% for the next 12 months.

Just trying to get OH debts cleared ASAP so that we can start a family and start looking into buying a place together. Yes I do realise that I would be responsible.

exel1966

Personally I would clear the EGG debt, then immediately pay off as much as you can from the other card using your savings, then transfer the max possible from the other card to EGG.

Ok you'll have no savings left, but you will only have a smaller amount at the higher rate and £500ish at 0% (+ the BT fee of course).

I assume another card is not an option ?

Don't forget to leave at least £1 in the Nat West Saver so you can still get your bonus £50 !

Staciep88

exel1966 wrote: »

Personally I would clear the £475 debt, then immediately pay off £525 from the other card using your savings, then transfer another £500 from the other card to EGG.

Ok you'll have no savings left, but you will only have £1995 at the higher rate and £500 at 0% (+ the BT fee of course).

I assume another card is not an option ?

Don't forget to leave at least £1 in the Nat West Saver so you can still get your bonus £50 !

I have contemplated with paying the remaining money of the savings off the big credit card but as its OH's debt (which he occured before we met) I dont really feel that I should. The Virgin, Mint and Egg card are all in my name so I feel by doing it this way I'm helping by giving him the opportunity to not pay interest on top each month. And I know that if we split I'd be responsible but I think Im helping him enough without putting my own savings to it. Yes another card would be a great option but I dont know what to go for. It cannot be Barclays as thats the current debt and I already have the following;

Natwest - £0
Capital One - £0
Mint - £771.75
Egg - £475
Virgin - 926.82

Any ideas?

sdooley

I think that by transferring his debt to your card you are setting yourself up for a problem with his debt psychologically becoming yours. You would want to clear that debt at the end of the 0% period - if your OH has been ok with paying revolving credit at silly rates in the past he may not be as incentivised to save - it could lead to arguments.

Better to lend your OH the £1000 savings, to be repaid once he's cleared the big CC. That gets his interest down quite a bit - will help him clear the remainder - but he's not getting off scot free for any of it. You could ask him to pay you the same %age you would get on your savings or just do it on a 0% basis.

Staciep88

Yes i agree. That debt would def be cleared in the allocated time of the 0% deal. A D/D is set up in place to make sure that happens. Oh yes beleive me it has lead to arguments - he has no idea about money thats why im trying to help. I dont want him taking ages to pay me back though, that means i'll have no savings and if worst came to worst one month we'd have nothing to fall back on, i will think about this though

sdooley

OOOH - had an idea - your other half has 0% cards already. He could call Barclaycard and ask them to switch him to a life of balance rate rather than him transferring to a 0% card. If they refuse then you could do a 0% shuffle - preferably onto his cards not yours (but needs must) but it's got to be worth a shot.

Staciep88

Well the 0% cards are in my name but he could still try that though, great idea thanks