Virgin MBNA have removed the fixed payment option

YorkshireBoy

JimmyTheWig wrote: »

For someone using a 0% deal to get help themselves out of debt, seeing that balance go down month after month must be very rewarding.
And that, in turn, must be a real incentive to pay more off the card, thus reducing their debt further rather than spending on stuff that they didn't really need in the first place.
This, then, would be much better for those people in the long run than an average return of 3% on the money they are overpaying.

For others, of course, the knowledge that they are "in effect" reducing their debt whilst _also_ earning interest on their money would be the incentive they need.

My point is that the incentive is worth more than the interest - so it is really important that people choose the best approach for them. (And I say this as a stoozer.)

You make a good argument Jimmy.

For people with 'real' debt, there's also the issue of having too much debt at the end of the 0% period, which could affect the limit given on the next card applied for to shift the debt on.

To counter that, as much of the debt as possible should be repaid from the savings account (up to) 2 months early so the CRA file is in tip-top shape....which obviously impacts on any savings interest gained.

Horses for courses!