Some help please

DilbertJones

I have taken out a egg card to clear of my overdraft which was £750 my natwest card 0%coming to an end £325 and i was given a limit of £2250

So i transfered £2137 my max allowed into my bank account, (was charged £42.74) which cleared my OD & paid off my natwest card in one go, I want to put the remainder into a isa to earn some interest on it before the 0& runs out.

now my query is this, i will be paying min of 2% per month of the debt around £40 i'll have £1000ish in a isa earning interest, hopefully enough to cancel out the BT fee, do u think this is a good idea?

£40 p/m is a tenner more than what i was paying towards these debts before hand, should i absorb the £40 from my wages? or should i siphon off some from the isa monthly?

Rafter

robodan,

Having paid the fee already, you certainly want to maximise the interest on the £1000.

Have a look and see whether you can beat the ISA rate (even after tax) by using one of the best buy savings accounts around.

As to how much you should pay towards the debts it depends whether you are trying to pay off the £1075 you owed on overdraft and Natwest or just keep it interest free.

If you wanted to pay it off within 12 months you would need to pay £90 a month for example. Make sure you only make the minimum payment to egg though - you might as well pay any extra into a high interest savings account while you have the 0% offer.

R.