Emergency Fund

~Beanie~

I have finally got my head around budgeting properly and have found that I am building up a 'pot' with the monthly allowances for clothes/car tax/TV licence/Haircuts etc. At the moment this is sitting in my current account.

I am begining to wonder whether it may be more beneficial to pay it off one of my credit cards and then use the card when I get my haircut etc. Same with my monthly food budget, at the moment it is in a plastic coin bag in my handbag but would this be better on my credit card and then using the card when I go to Tesco? Wouldn't it reduce the interest I will pay overall?

I would be really strict and only use the amount budgeted and no more!

angelflower_2

personally I wouldnt do that....purely because in the mind, you will start becoming reliant on the plastic.

I would stick to cash transactions only even though you may save a tiny bit in terms of the interest.

Is there no way you can transfer the card to a 0%?

~Beanie~

angelflower wrote: »

Is there no way you can transfer the card to a 0%?

Nope, I tried that. Before my LBM earlier this year, I was getting into a bit iof a mess with Capital One and had some late payments. All sorted now but obviously messed my credit file up.

I just thought that it would reduce all the ineterest I was paying on one of my cards - of the £80 I repay each month, £60 is interest!!

~Beanie~

Thanks, I am going to give it a go from next payday. I only have one credit card anyway, the others were chopped into a million pieces ages ago, and I will be very strict and make sure that I only spend the budgeted amount that I pay off it at the start of the month.

Plus, it may also stop me spending money. Like when I want a magazine or a bottle of wine and have no money in my purse but know that I have money in the food budget in my bag... I certainly won't use my credit card for buying magazines!