Save and pay balance or use 0%?

stefd_84

Hi everyone,

In Dec last year,I BT 2 amounts from my Capital One and Halifax credit cards to this new 0% for 12 months Post Office Card - the balance currently stands at 1900.

What I was wondering, any help would be greatly appreciated here, was I am looking to rent out a flat asap and thought either :-

> save half of my wages (starting from this month's wage at the end of Jan, say 400 pounds) and pay off my credit card in 4/5 months so that I can start a clean debt free slate in the new flat (and therefore I would presume have one less bill to pay out)

or

> am I wasting my money trying to pay off more than my minimum payment (currently 48 quid) with the card being at 0%. But then on top of my rent, bills etc, I'd had an extra 50 to pay out on the credit card.

Here's my SOA

I currently live with my parrents and pay no digs

Earn 900 a month after tax at the mo (looking for a better paid job tho)

Pay out the following: -

148 for the finance for my car
48 (as mentioned above) for my c/c its the only c/c I now have as I paid of the remaining blaance on my other one.
10 a month on contact lenses
35 a month on phone bill

Got a 300 pound overdraft but I haven't used it and plan to either reduce it too 100 come feb or take it off completly.

Sorry if this doesn't make sense but I just don't want to commit myself to 6 months in a flat (to which I'll be living on my own) if I cant afford it (altho i am desperate for my independance back)

CannyJock

While it's at 0% you're wasting your time paying more the minimum. You've paid the balance transfer fees, so might as well get the full 12 months benefit from it.

Take the "extra" amount and stick it in a savings account and earn up to 6% interest on it.

Then just before the 12 months 0% period is up, take the money you've saved and clear the card in full with it.

If the overdraft facility isn't costing you anything, just leave it there as a safety net. If you're paying for it then look at cancelling it.