Stoozing

mrs_T

I thought I understood but now I'm confused again. I got a tesco clubcard 0% cc in march 2010 with a limit of £5k and spent £4900 on it in May. I am saving into my a+l isa and will have the money to repay the debt well before it's due in march 2011. I am making minimum repayments on the tesco cc. Should I be spending on the cc to keep the debt amount up (while saving a corresponding amount) and look for another 0% card to transfer £5k debt to in march 2011? Or should I be allowing the cc debt to decrease by the minimum payment amount and pay off the balance when it's due in march 2011?

splatt30

If it's 0% on purchases for 12 months there is nothing to stop you continuing to spend on the card to keep it as close as possible to the £5000 limit, but be careful not to go over!!!! Put the corresponding amount aside to pay it off in March 2011.

You might consider doing a balance transfer next March when the 0% runs out. Whether this will be worth it or not will depend on what credit card offers are avaliable ie how long the balance transfer will last at what the fee will be and the minimum payments. Together with what interest rate you can get. At the moment balance transfers for stoozing are rarely worth it because savings rates are so low it rarely covers the fee. Nearer the time you can use the calculator on the stoozing site to see if it will be viable to transfer or not.