What would you do - plan gone to pot.

mrs_mug_2

We've got a sofa from DFS that we need to start paying for. The total balance is £1346. We have this money (just!) which we have saved so we can pay it off in one go. It is on 0% interest though, so not a big deal if we don't pay it off in one go. Its £88 a month if we don't pay it all off.

We've just applied for an A&L current account (through quidco) and credit card. They've offered us the credit card with a balance of £2k less than our existing BOS card (which we are now paying interest on as of this month). We are reluctant to call A&L yet incase we miss out on the £50 from quidco. So what would you do:

A) use the £1300 that we've saved and pay it off the cc. Do a BT for what we can and have £700 on the BOS card at a high rate of interest.

pay off the sofa as planned and negotiate with BOS for a low life of balance rate

C) Wait until the A&L card has arrived and then call them to ask for a further £2k so we can transfer the full balance

D) some other nifty idea that escapes me.

Answers on a postcard please.

I want to do the 'right' thing for once, and this has completely thrown me....

MCBIRNIE25

I think what i would do is bt the card, use £700 of the money saved to pay off remainder. Rest of money on sofa then once you have negotiated with A&L clear the debt completely.
That's my opinion.

Cheers,

lynzpower

hang on a sec. How much is the APR on the sofas. Mines 0% now, or 24% ( or 28% cant quite remember) Do check. id pay the sofas off.

ONce that debt is written off & wiped from your credit record you MAY be able to get other low APR cards.

mrs_mug_2

Sofa is 0% for 18 months - when it 'll be paid off by. I really want it paid off because although it is 0% I had allocated the money we've been given to that so hadn't included the debt in my workings - I suppose having that debt is more of a dent in my esteem than anything.

Can you do a partial BT do you know?

rog2

mrs_mug wrote:

Sofa is 0% for 18 months - when it 'll be paid off by. I really want it paid off because although it is 0% I had allocated the money we've been given to that so hadn't included the debt in my workings - I suppose having that debt is more of a dent in my esteem than anything.

Can you do a partial BT do you know?

Please, please check the small print - I believe that if you are late paying, or miss a payment for whatever reason, this 0% can jump to frightening levels - I hope I am wrong.
We bought a sofa from DFS about five years ago, following invite to 'wine and cheese reception'. We took the pay nothing for a year, then interest free for three years, but following warnings from others, we decided to pay the full balance at the end of the first year. Just as well - sofa £1800.00 was not very good and we changed it after 3 years.

mrs_mug_2

rog2 wrote:

Please, please check the small print - I believe that if you are late paying, or miss a payment for whatever reason, this 0% can jump to frightening levels - I hope I am wrong.
We bought a sofa from DFS about five years ago, following invite to 'wine and cheese reception'. We took the pay nothing for a year, then interest free for three years, but following warnings from others, we decided to pay the full balance at the end of the first year. Just as well - sofa £1800.00 was not very good and we changed it after 3 years.

They aren't very good, are they? We are less than impressed with ours 12 months on. Still, it is better than we had before and we have 2 children so I suppose it was bound to look tired quickly.

I'm 99% sure we' won't miss a payment or be late paying. Our finances are tight but thankfully not that tight.

But I am still veering towards paying it off. 1 less debt after all.

CLAPTON

does A&L current a/c come with a promotional interest free overdraft for the first year?

mrs_mug_2

Yes clapton, they do. We have been given £1500. Which has paid off 1 overdraft that we were paying interest on, we paid for our contents and car insurance on it (as we'd pay them monthly and incur interest on those) and that leaves us with about £200. That said, some of the overdraft or credit card could be paid off with this challenge money that i'm getting but I'm not getting the money together quick enough really.

rog2

mrs_mug wrote:

They aren't very good, are they? We are less than impressed with ours 12 months on. Still, it is better than we had before and we have 2 children so I suppose it was bound to look tired quickly.

I'm 99% sure we' won't miss a payment or be late paying. Our finances are tight but thankfully not that tight.

But I am still veering towards paying it off. 1 less debt after all.

Perhaps you should hold on a while - I know that the DFS Sale 'MUST END MONDAY' but it won't - honest:rolleyes:
Even if it does (DFS?) there are some other good offers on, and, you never know, you might find something of better quality:D

domestic_goddess

I dont think that there is much point calling a + l to increase your credit limit as soon as you get the card as they set you at the most they can when they open your account and without getting a bit of account history behind you they wont be able to up it so soon after opening.

Personally I would pay off the sofa now as it is one less debt.

good luck whatever you do

mrs_mug_2

rog2 wrote:

Perhaps you should hold on a while - I know that the DFS Sale 'MUST END MONDAY' but it won't - honest:rolleyes:
Even if it does (DFS?) there are some other good offers on, and, you never know, you might find something of better quality:D

Too late, we bought it last year

We had a years interest free period where didn't need to make any payments, then a further 2 years of interest free where we do make payments