Debt free or not debt free??

Imelda

Morning all,

I have a bit of a dilemma: I got paid today and looking at my budget I am able to put enough away in my savings to clear my last remaining debt- the credit card :T Since this month I have no CT or water to pay, I got my Health and safety pay from work (I am a first aider and evacuation marshall) and £100 back from Quidco for doing my car insurance through them.

So what's the problem? The card is 0% until the end of May, my head tells me to keep the money in my savings account and earn a few pounds in interest but my heart says pay it off- now!

I guess I won't count myself as Debt free until this has been cleared.

I'm also worried that I will have messed my budget up and completely miscalculated what I need for the month. There is also the temptation to dip into it, it is my OH's birthday in a few weeks, it's his 30th and I would love to treat him to something special. Maybe I should get the money out of my reach?

Decisions decisions

BlondeHeadOn

This is a tricky one, isn't it - I don't know what I would do in the same circumstances so I'm not much help there I'm afraid. It's a nice dilemma to have though, so mega well done you for getting to this point !

:beer: :beer: :beer:

hypno06

Double check your figures and if you have got them right, then I would pay off the last CC and run around the house naked shouting woohoo. (not a pretty sight for the neighbours or the lodger, but who cares.... )

It will be a fab feeling and one that I look forward to having in a trillion years time!

Tondella

Do it, what a feeling - worth far more than the couple of pounds interest you might earn until May.

steve700

Clear the card.

Imagine if you missed the final payment prior to the 0% interest period ending and had to pay wodges of interest on your balances because of it.

Imelda

steve700 wrote:

Clear the card.

Imagine if you missed the final payment prior to the 0% interest period ending and had to pay wodges of interest on your balances because of it.

I had actually thought of this and had decided in my head to pay it off 2 weeks before the end date anyway, just in case. That would be a nightmare!

immoral_angeluk

I would pay it off because knowing me if I kep the money aside til May SOMETHING would come along and mean I had to dip into it.

Nutty_Tart

Mind if I throw in my tuppenceworth?

How about making a compromise? Pay off all but £100 on your card and keep that to one side in case you have miscalculated and pay the balance off next month - there is no CT or water to pay then either and the card is still 0%? That way, you have paid off a chunk of the debt, but kept a 'cushion' just in case. If you find that you haven't miscalculated then you can put it on the debt later in the month?

Must be a great feeling to be debt free - roll on Dec 2009!! lol

Imelda

Nutty_Tart wrote:

Mind if I throw in my tuppenceworth?

How about making a compromise? Pay off all but £100 on your card and keep that to one side in case you have miscalculated and pay the balance off next month - there is no CT or water to pay then either and the card is still 0%? That way, you have paid off a chunk of the debt, but kept a 'cushion' just in case. If you find that you haven't miscalculated then you can put it on the debt later in the month?

Must be a great feeling to be debt free - roll on Dec 2009!! lol

That's actually not a bad idea! I can't see what else will come up, maybe car problems but then I don't use if often so any repairs could wait.....

This is going to be the first time in my adult life that I am debt free (ex mortgage), I am going to enjoy it!

fififofum

a bird in the hand is worth two in the bush! if it was ME i would pay it off, cut up the credit card and dance!

coxj2901

If you have truly broken the habits that got you into debt in the first place then it would make sense to leave the balance at 0% and earn interest on the cash in your bank.

We're not quite there yet so I would have to pay it off to remove all temptation!

Rgds, John