Should I pay it all off?

elj2287

Hi everyone

In a nutshell I'm 21 living at home with the folks. I really want to move out and am waiting for the right time to buy with OH. I'm wanting to save 5k for half the deposit asap so I'm ready to pounce on my dream home!!:D

At the moment I have got a credit card at 0% with Barclays till November 2009. I'm not spending on it as its one I transfered the balance of an existing card (now cut up!!)

The card has £1267 on it. I also have had a loan off a family member of which I have £500 left to pay (paying off £250 per month so will be paid before christmas)

As I have no savings currently do I pay the minimum off on the card (£30) and save whatever else I can? Or do I pay off the card then start saving? I've worked out if I stick to a strick budget then I should be debt free by March. Though that could be the perfect time to start making offers on houses?!

Can anyone give me a bit of advice? If it helps I can post my SOA shortly.

Thanks

elj2287

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1149
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1149

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 150
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 29
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 40
Clothing................................ 50
Petrol/diesel........................... 160
Road tax................................ 10
Car Insurance........................... 30
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 0 Forgot to put this one in!! Prob be about £50 per month.
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 534

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4000

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Barclays.......................1267......30........0
Total unsecured debts..........1267......30........-

Monthly Budget Summary
Total monthly income.................... 1,149
Expenses (including secured debts)....... 534
Available for debt repayments........... 615
Monthly UNsecured debt repayments....... 30
Surplus(deficit if negative)............ 585

Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total Secured debt...................... -0
Total Unsecured debt.................... -1,267
Net Assets.............................. 2,733

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

halight

Hi id pay it off say soon as i can if i was you. Will will look better on your credit file.
Good luck with getting your dream house

boredofbeingathome

Well that is a good start. If you can pay off your card by the timethe deal runs out i wouldn't bother as you can earn more interest elsewhere.

You could get a better package on your mobile phone and look at all ways to maximise your income. So why not add a few mystery shops and put that straight away into a savings account?Have a look at Benbens thread for money making ideas and Hypno's. I would also add that you could draw up a plan of savings and make sure yo umaximise your tax free limit for both of you with ISA's and of course sign up through quidco to get cashback for absolutely everything you can and chuck it all in the pot(savings)

Good luck with it all BOBX

boredofbeingathome

fORGOT to add, if you regularly get prescriptions get a prepaid certificate.Have you got you rpass plus? This will also lower you car insurance and always check using Martin's guide for insurance.

Damita

Pay it off asap...

skintandscared_2

I think I would calculate what needs to be paid each month on the card to make it clear by the time the 0% deal ends. So, say £105ish a month? And put the rest of what I have left over in a savings account towards my deposit. No point paying any more than that off the card when you aren't being charged interest! You're better off having your money somewhere that MAKES more money for you. That's what I'd do anyway.

** edit - thought some more **

Isn't it best to make the minimum payments while it's 0%, chuck everything else in savings to earn interest, then pay off the card from your savings the week before the 0% rate ends? You might want to post in the credit card section - they know all the best ways to do this kind of thing!

elj2287

skintandscared wrote: »

Isn't it best to make the minimum payments while it's 0%, chuck everything else in savings to earn interest, then pay off the card from your savings the week before the 0% rate ends? You might want to post in the credit card section - they know all the best ways to do this kind of thing!

That sounds like a good plan!!

Thanks to everyone else for their thoughts