Is interest free credit a good idea??

YorkshireBoy

bobmonkeydog wrote: »

I didn't take the depreciation into account.

We know!

I was just working on the interest I will earn on the £800 over the course of the 3 years in my ISA at 3% - just over £74.

But what's the point in that? It's an irrelevant calculation because you won't have it all due to spending it on monthly payments!

I wouldn't make any interest if I simply paid the bill in full unless I saved the £22 monthly payment for 3 years which is unlilkely!!

How so? You've managed to save at least £800 already so you must be a saver.

eschaton

bobmonkeydog wrote: »

I didn't take the depreciation into account. I was just working on the interest I will earn on the £800 over the course of the 3 years in my ISA at 3% - just over £74.

I wouldn't make any interest if I simply paid the bill in full unless I saved the £22 monthly payment for 3 years which is unlilkely!!

Two choices really.

Pay in full and make nothing

Pay it up and make £12 a year

£12 a year is better than nothing but it wouldn't be enough for me.

bobmonkeydog

In reponse to Yorkshire Boy's post..

I do have some money in savings but don't make regular deposits. I worry that I would use £800 and then not replace it. At least with the IFC option I won't have to touch it. If there was any interest involved I wouldn't think twice about using savings.