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Advice needed.
SAMMYE_2
Posts: 244 Forumite
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
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
[STRIKE]£106,200[/STRIKE] mortgage with 5% deposit 2 years ago on 6.99% 04/06/08 :eek:
Overpaying the max 10% per year for the next 2 years until July 2013 when I can remortgage and should be able to get down to 55% LTV.
Overpaid 10% £10,619.87 Dec 2010 & 10% £9,475 Aug 2011
Mortgage was £690 now £560
Currently £85,203 - 71% LTV 26/08/11
Overpaying the max 10% per year for the next 2 years until July 2013 when I can remortgage and should be able to get down to 55% LTV.
Overpaid 10% £10,619.87 Dec 2010 & 10% £9,475 Aug 2011
Mortgage was £690 now £560
Currently £85,203 - 71% LTV 26/08/11
0
Comments
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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.[STRIKE]£2200[/STRIKE] [STRIKE]£1950[/STRIKE][STRIKE]£1850[/STRIKE] £1600 on my credit card
£1200 of £6000 Savings0 -
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 [STRIKE]£106,200[/STRIKE] mortgage with 5% deposit 2 years ago on 6.99% 04/06/08 :eek:
Overpaying the max 10% per year for the next 2 years until July 2013 when I can remortgage and should be able to get down to 55% LTV.
Overpaid 10% £10,619.87 Dec 2010 & 10% £9,475 Aug 2011
Mortgage was £690 now £560
Currently £85,203 - 71% LTV 26/08/110 -
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?[STRIKE]£2200[/STRIKE] [STRIKE]£1950[/STRIKE][STRIKE]£1850[/STRIKE] £1600 on my credit card
£1200 of £6000 Savings0 -
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.[STRIKE]£106,200[/STRIKE] mortgage with 5% deposit 2 years ago on 6.99% 04/06/08 :eek:
Overpaying the max 10% per year for the next 2 years until July 2013 when I can remortgage and should be able to get down to 55% LTV.
Overpaid 10% £10,619.87 Dec 2010 & 10% £9,475 Aug 2011
Mortgage was £690 now £560
Currently £85,203 - 71% LTV 26/08/110
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