divorce settlement..should I pay off my credit card

[Deleted User]

My ex wife bought me out and I received £20,000 and am now renting.The cost to move in was roughly £4000 which I paid on a credit card.Is it beneficial to me to pay that all back in one hit or not?

January20

How long is a piece of string?

Seriously, unless you tell us what the interest rate is, nobody can really answer that properly. For instance, if you were on a 0% deal for 18 months, you could put that money in a savings account where you would get some interest and then repay your credit card at leisure, but if the interest on your CC is more than the interest you would receive from a savings account, then you would be losing money, so you should repay it in full.

[Deleted User]

Interest is £55 on my statement.It's a 0% interest on a balance transfer card so paying interest on purchases etc.Bank has asked me to put the money in an interest account at 2% pa.

BitterAndTwisted

No debt it always better than some debt. Four grand is quite a lot and I wouldn't be happy about paying £55 a month in interest, regardless of how much I was getting on the £20k on deposit. 2% is derisory

ViolaLass

Is your credit card one of those that allocates payments to the debt with the highest interest? If so, you could pay off the purchases amount and leave the 0% bit for now.

NAR

Deleted_User pay off the card and cut it up - you no longer need it.

dirtysexymonkey

NAR wrote: »

Deleted_User pay off the card and cut it up - you no longer need it.

unless he wants to buy something with the protection that only a credit card offers.;)

go_cat

Pay it off and start again debt free

willow_loulou

Yup I agree, pay it off - pay the bit thats making interest now and the 0% bit the moment its starting to acrue (sp?) interest. Put that bit into premium bonds for the duration - you never know you could win a million

January20

Deleted_User wrote: »

Interest is £55 on my statement.It's a 0% interest on a balance transfer card so paying interest on purchases etc.Bank has asked me to put the money in an interest account at 2% pa.

If you are paying interest then you should pay off the card. And don't let the bank tell you where to put your money. Do your research and find the best account amongst all the banks available to you! As someone said 2% is nothing!

jetplane

Dont use a 0% balance transfer for purchases. (Pay it off find out the best deal for your savings and get a reward card for your purchases and the protection that comes with credit cards.