Pay of credit card or tart it?

shedi123

Ok what should i do. I have about 5k on an mbna credit card which is on the 0% interest at the moment but coming to the end of the 0% in may. I have the money in savings to pay it off no problem but i'm not sure if i want to. My other plan if i don't pay it off is to transfer it to another card with the 12months minimum interest free period and pay it off monthly within that period. Also i'm looking at buying a house maybe this time next year depending on the market. What should i do? Thanks in advance.

Moggles_2

Which other credit cards - besides MBNA - do you have at the mo?

Georgie4

With savings interest rates what they are at the moment you have to ask is it worth paying the 3% balance transfer rate to another card to keep your money in an account which could be earning less than this

shedi123

I have a barclaycard, i did have mongan stanley before that but it changed to the barclaycard. That card i use for everyday use but i pay it off without fail every month.
Whats your thoughts?

shedi123

thats a good point georgie. Maybe just pay it off and then save again to replace my savings.

Moggles_2

I have a Barclaycard. I did have Morgan Stanley before that, but it changed to the Barclaycard. That card I use for everyday use, but I pay it off without fail every month.What's your thoughts?

If you have just the two credit cards at the mo, there's nothing to stop you (credit score-wise) from applying for a new 0% balance transfer card. It's your choice really.

Anastasia

I would keep the cash and either move the balance to a 0% credit card (3% transfer rate) or a good life of balance card.

I know the experts say it makes no sense to have cash in the bank when you have debts but it is also more difficult to borrow money if you need it.

I have 2 credit card debts on low interest rates, life of balance. I won't be able to borrow money at these rates again. I am building up cash at the moment and will start paying extra amounts off the cards when I feel secure that I can cover any emergencies without borrowing.

Ana