Save or 0%

creditcardconundrum

Hi, originally posted this on credit card board, but haven't had much luck with replies, maybe this is a better place for it.
I graduated 2 years ago with a credit card balance hangover which I have partially cleared and finally moved to a 0% deal (HSBC) after paying over the odds to Barclaycard for months.
My 0% period is about to end and I am wondering whether it is best to pay off the remaining balance of my 0% card and close it using the entirety of my savings in my mini cash ISA or to transfer the balance onto another 0% deal and carry on trying to add money in the ISA each month. I would then aim to clear the balance during the time of the new 0% deal. It's worth noting that I have an overdraft to pay off too, but currently this is at a pretty low rate.
Thanks so much

kathfisch

If you're paying any interest at all on the overdraft then you have to clear that as your priority, to save money.

Is your isa enough to cover your overdraft? if so, if you can get another 0% card then do, and use savings to pay off the overdraft. If you can't get another 0% card, then use the entirety of your savings to pay off whichever debt is at the higher interest rate (credit card or overdraft) and if there's any left pay it off the other. There's generally no point having savings if you've got interest charging debts (with the exception of the student loan of course).

Whatever you do, don't start saving until all debt is gone or at 0% (and, in this case, beware the temptation to spend it rather than pay off the card!).

Hope that makes some sense!

Kath