Please Advise, is this a good idea?

redmel1621

Hi

I posted the other day about my Credit Card and Catalogue debt...Well after thinking a lot about it I have had an idea,but just need a bit of advice. I know it sounds good in theory but is it actually a good idea?

I owe £2295 (£2250 limit!!) on my credit card, and I have just been thinking about how I can get rid of this debt. Well dh gets a bursary from Uni of £1600 which we have been pretending doesn't exist as the plan is to stick it straight into our (empty) ISA each year to save for a car for when he graduates in 4yrs time. Well I also get a £500 sure start grant in Jan/feb as I will be less than 11 weeks due baby no.3.

If I use both of these monies to pay of the Credit Card debt I could then pay it back into the ISA monthly,........The Catch is, I could not tell dh I am doing this as he would go mad, he has no idea how much the Credit Card is run up to and he was annoyed that I got it in the first place....Is it worth the risk of him finding out?? The ISA is in my name and he doesn't know the online banking passwords so I doubt he would find out!!!

Is it a good idea or should I leave his money well alone and try to pay off the Card myself?

Mel x

looktothefuture

Well yes it's a good idea but it also has some major cons attached as well! The uni bursary belongs to your DH, and the Sure Start Grant technically belongs to baby... plus you'd be decieving your DH if you paid off the credit card that he's already miffed about...

But in saying that...

If I were you, I'd probably tell hubby about how much I'd spend on the CC and then make this suggestion to him! He could either go along with it or he could poo-poo it!

Good luck with what ever you do decide to do!

pepe2008

And when DH suddenly takes an interest in the ISA......I hid huge debt from Mrs pepe.....wont be doing that again:rolleyes:
Best to talk, not easy, but best

doodledo_2

Well it definately makes financial sense as I assume you're credit card interest rate is higher than your ISA.

Whether you are comfortable doing this and not letting your OH in on it is one I'm afraid only you can decide.

redmel1621

Oh forgot to say...re the sure start grant. I have already spent it (on the credit card,) as I had planned for it to buy the Pram, Cot, Mattress, Travel Cot, Paint and bits for the room....I decided to buy them early and pay the card back when the money came through!! I know, I should have waited but I'm trying to get organised.

Mel x

redmel1621

I would not be mega happy, But we have already agreed it is to go into the ISA and is to be forgotten about....Hmmm I am really trying to talk myself into this one, aren't I.

Yes the Credit Card is a high interest one...I have a bad credit rating from years back.

I think on the statement it said next months interest will be £91 approx....So the £103 I have to pay of it will mostly be going to the card company won't it?? whereas if I pay it off I can pay the £100+ each month into the ISA and it will build up quickly... Well now i'm starting to ramble and am getting myself confused I think!

Mel x

halight

I think that its best to pay the card off as the intrest will be a lot higher on the card than you will get from the isa. But your OH would go mad if you did this behind hi back.
Could you tell him about it and say that you will use the money to pay the card off and then you will put the money back into the isa and also after you have paid the isa back all the money you will also carry on paying some money in each month to build up any lost intrest from the isa and also some of the intrset that you would have paid on the card that you saved by useing the isa money. Over the long term you would be debt free and also end up with more money in the isa to buy a car with or use to have a holday after he has finished uni

All the best and good luck

redmel1621

Thank You all for your replies

I will need to have a big think about this before doing it.

Mel x