Advice needed.

SAMMYE_2

I have a £3,000 0% credit card bill which I have been basically using for stoozing (saving money I would have spent without the card, but using card to pay for it and earning interest on saved amount).

Anyway it has come to the point where I need to pay the bill.

I dont know whether I should 1. pay off the £3,000 with the money saved or whether I should 2. transfer amount to another 0% card for 15months and incur a 2.5% charge and use the money saved to pay off some of my mortgage which is at a very high 6.99% rate!?

I realise this may sound like a dumb question but just think I may be missing something.

Cheers all

Danni-R

You should pay the 'debt' with the highest apr but you need to factor in how much the 2.5% charge will be?

I'd pay off the bill and then use any spare money for the mortgage.

SAMMYE_2

Danni-R wrote: »

You should pay the 'debt' with the highest apr but you need to factor in how much the 2.5% charge will be?

I'd pay off the bill and then use any spare money for the mortgage.

Well my mortage is 6.99% whereas the fee for the transfer to another card would be 2.5% (£75) so after taking off the £75 I would be saving nearly £200 by putting it towards my mortgage instead... I can easily afford to pay the card off but trying to work out which makes the most sense financially.

Thanks alot for your help Danni

Danni-R

I dont think I really helped but ok!

I would prefer to pay off all other bills and debt and then hit the mortgage full tilt.

Have you still got your savings in order? 3 or 6 months?

SAMMYE_2

Danni-R wrote: »

I dont think I really helped but ok!

I would prefer to pay off all other bills and debt and then hit the mortgage full tilt.

Have you still got your savings in order? 3 or 6 months?

Well as you pointed out I should pay the debt with the highest APR% which is the mortgage so you did help.

Hmmmm not really ... Well I would have a years savings if I didnt want to overpay this month.

It only takes me two months to save up a 8 months savings though so I'm only really at risk for those 2 months.