0% cards - do you see them as free money

leni

My partner mentioned last night after I was talking about putting our extra money towards our debts that he didn't see the point as in effect it's 'free money' so why stop enjoying ourselves whilst it's getting paid off in smaller lumps!

:mad: I totally disagree and whether you face your debt today or in 9 months, it will still be there and will need to be paid at some point, plus the quicker it's paid, the more disposable income we'll have to enjoy ourselves.

whats your opinions, does my partner need a kick up the backside!?:T

kathfisch

0% is not free once the intro rate (presuming that's what it is) ends and becomes some ridiculously high interest rate!!!

If you really want to squeeze every penny, save any extra money in a savings account to earn interest and then pay it off the debt before the 0% ends. If you won't dip into it, that is! If you're going to be tempted, just pay it off!

There's no such thing as 'free money' - thinking that leads to problems!

newleaf

I've recently transferred a big debt to a 0% card. I was going to pay as much off every month as I could manage, but then I realised if I put the money in a savings account and just pay the minimum payment each month the rest will be getting 5% interest whilst it's in my account. Then, 1 month before the 0% period ends I'll transfer it all back to my current account and pay the card off (hopefully) or at least the majority of it. So, whilst I see your point about it still being a debt, I am making it do some work for me for a year. I'm being very frugal and putting loads of money away in the account each month. I haven't been tempted to splurge on anything naughty so far.

sanfrancisco

My hubby use to be like this.

Kick him up the butt. He has his head in the sand and does not want to pay it all back because that involves effort and pain. He is talking b*****ks. I know, I listened to it for ages!!!

Molanole

newleaf wrote:

I've recently transferred a big debt to a 0% card. I was going to pay as much off every month as I could manage, but then I realised if I put the money in a savings account and just pay the minimum payment each month the rest will be getting 5% interest whilst it's in my account. Then, 1 month before the 0% period ends I'll transfer it all back to my current account and pay the card off (hopefully) or at least the majority of it. So, whilst I see your point about it still being a debt, I am making it do some work for me for a year. I'm being very frugal and putting loads of money away in the account each month. I haven't been tempted to splurge on anything naughty so far.

I want to do this when my 0% mint card arrives but I'm not entirely sure how I go about working it out

wizard3891

is it just cc debts you can transfer to a 0% card???

Catseyez

I used to have that frame of mind before I saw the light(bulb)! I can't really give any advice as to how to help him see differently...but as someone said, debt is debt.

At one point, I started to think of myself in terms of 'how much I was worth'. Adding up all the monies owed on credit put me in a minus figure. Soon I will be a 'plus' figure and it feels so good. It might sound crazy, but it's nice to know that 'I'm worth' something, even if it is only a tenner! Much better than being a slave to the credit companies.

Perhaps you could have a light hearted discussion about how much money people are worth and go from there. It might appeal to his male ego and make him think. Just a suggestion, please feel free to ignore it!

newleaf

Molanole wrote:

I want to do this when my 0% mint card arrives but I'm not entirely sure how I go about working it out

What do you need to work out Moley?

Molanole

Oooh - I don't mean to hijack the thread or anything. Sorry leni.

I'm going to be transferring a credit card balance (the OHs to my 0% mint card). He currently has a minimum payment of about £60 per month on an outstanding balance of £2,200. About £30 per month is interest. I don't really get what I need to do to make savings work for me so that I can take advantage of the interest free period. Do I simply allocate what would have been added as interest to the savings so that there is a lump sum when the 0% ends? So confused. Thanks newleaf

Sorry again for the thread hijack leni.

newleaf

I'm lucky in that I've managed to transfer my whole debt (which was nearly £14,000) to two 0% credit cards. One is until May 07 and the other Sept 07. So I have set up a direct debit to both to pay the minimum amount on the due date each month. I'm then throwing every spare penny I have into my savings account. If circumstances mean you can't do this then yes, the interest you would previously have been paying them is a good place to start. If you find at the end of the month that you have underspent, I recommend you put any extra into the saving account asap. Then, about a month before the interest free period is due to end, withdraw the lump sum from your savings account, along with any interest it has accrued for you, and (hopefully) pay off your CC in full. Tart to another 0% card in good time if necessary though.