How much would you pay per mth?

sugarpants_2

We have one credit card left to pay with £1200 on it.

I think we should pay £400 off each month (will take 3 mths to pay) and budget over the next few mths.

DH reckons we should pay £200 off each month (will take longer) and live 'comfortablly'

We have had soo many arguements over this so thought I would post on here and see what you guys reckon? HELP

We want to start saving for house deposit too so the quicker we pay off the card (and our 1k overdraft) the quicken we can start saving for that house deposit:D We are young anymore and are aged 32 and 30 :eek: Want to get on the property ladder QUICK!

katsu

What does DH want to spend the extra £200 PCM on? Work out the extra interest it will cost you by using the snowball calculator and see if that helps.

Pott5y

You could always meet halfway.

You could pay £300 per month. This would take you only 1 additional month to pay it off and still have a little to enjoy yourselves

sugarpants_2

Think youre right. Although the enjoying ourselves would probably go on buying the kids new school uniform etc.. GRR wish we were rich!

Pott5y wrote: »

You could always meet halfway.

You could pay £300 per month. This would take you only 1 additional month to pay it off and still have a little to enjoy yourselves

Geebee

Hi Sugarpants, whilst i agree in theory with what Pott5y has said, i personally would be inclined to throw every bit of spare cash i could at the debt, just to get rid of it.
Katsu makes a good suggestion with the snowball calculator too.

Best of luck. GB

Busy_bee_3

Personally, i'd pay the credit card off as quickly as possible. if its not 0% you'll be paying more interest if you drag it out over a longer period. you may have to make sacrifices in the short term but when its paid you can decide how much you want to save per month towards the deposit for a house. If you can afford to pay £400, i think you should do it. Otherwise, why don't you go for £300 per month. It'll take a month longer to pay off the card and you'll have the extra £100 to make things a bit easier and if there's any money left at the end of the month, put that towards the debt.

theoretica

Do you need a fixed amount? Why not pay £200 off at the start of the month and put another £200 aside to pay off at the end of the month unless there is something special you really want to spend some of it on instead.

shoe_gal_84

I would aim for the £300 per month as a compromise but aim to be sensible over that time and agree that if you can afford more, pay off more. Chances are you will get your way and it will be nearer £400 anyway!

Hannah_10

theoretica wrote: »

Do you need a fixed amount? Why not pay £200 off at the start of the month and put another £200 aside to pay off at the end of the month unless there is something special you really want to spend some of it on instead.

This is what I do, there's £85 quid "on standby" till 10th August, hopefully I wont use it then I can pay it off something. If I do need it I know where I stashed it (not in my bank account- too tempting).

Marisco

I'd pay as much as possible to get rid of it. You can then concentrate on saving for a deposit:) By then you will be used to doing without the £400, that could possibly go towards your savings;)