Debt gone, how do I proceed?

scorscribler

Hello all!

The last few weeks have seen the end of a Tesco CC, my final payment on a HSBC loan (and a £500 return), and next week will see the clearance of a M&S CC. This all means that I am £250 a month better off from here on.

I would like to stooze, one card for a slow stooze, and hopefully another for a quick cash injection into an ISA (which is hard work by all reads). As I am nearing the end of the M&S card offer period, is the TC option out of the window?

Would I be better off simply transfering the monthly £250 into the ISA (minus the DD on the SSCC)? Along with the slow stooze amount (between £3-400 a month)? And forget about a fast stooze?

I would like to get as much as possible into the ISA early on, and then play on ZOPA (I have £200 in there at the moment to test the water) with any amount over the allowance.

I look forward to reading your replies, and thanks in advance!!

scorscribler

I should of mentioned, the M&S card has 4 months left of the 0% deal. The bank accounts I hold are with HSBC & Halifax.

jamesd

From the numbers it seems that you'll have difficulty fully using your £11,280 ISA allowance. Normally that would come first but since you probably can't use it all you might give priority for non-investment money to the First Direct regular saver account that's paying 8% on up to £300 a month.

Once you've fully used all of those including the S&S ISA you can consider other investments. Zopa's a high risk investment in part because it has no investment regulator and no FSCS protection so it's only suitable for a maximum of 5% of total investment value except for those with very high risk tolerances. Doesn't much help that you can easily get better expected returns tax free from investments within a S&S ISA.

A fast stooze is OK if you think that you can make the cost of the balance transfer in the time saved in getting the money in place via the slow stooze. And if you think that you can make more after tax then the cost of the money. That largely rules out fast stoozing for most cash ISAs.

Sandmonster

That 8% sounds too good to be true - is the downside having to put up with a first direct current account. Or is there a way to get it without changing current account?
(Martin doesn't mention it as far as I can see?)

jamesd

You don't have to change current account, just open one.

Sandmonster

I started to apply, but then noticed the £10 per month fee:

Banking fee
You must pay our £10 Banking fee for each month or part of a month that you hold a 1st Account unless we agree to waive the fee. If applicable, the fee will debit your account monthly in arrears.

Banking fee waivers
You will not have to pay the Banking fee:

for the first six months following account opening
for any month in which you:
pay into your account* (other than by internal transfer from another first direct account) a minimum of £1,500 or you maintain an average monthly balance on your account* in excess of £1,500 (month means calendar month and we will work out the average monthly balance by adding together the end of day balances for each day during the month and dividing the sum by the number of days in the month) or
hold a first direct mortgage, credit card, personal loan, savings account (*excludes Regular Saver Account), First Directory, or first direct car or home insurance policy;
in relation to any second or subsequent 1st Account in the same name. (If you hold a sole and joint account, your joint account will not be considered to be in the same name unless all joint account holders are the same);
if your account is inactive for more than 90 days and the balance of your account is less than £10.
* Where multiple current accounts are held, accounts will be considered individually in respect of balances and credits received and will not be aggregated when assessing whether a fee is payable.

Will have to look a little closer. I notice it does say it will be waived if you have a saving account, but not the regular. I wonder if you have to put anything in it?...

Sandmonster

I've just realised I've rather hijacked this topic. Did a bit of a search & found there's already a thread about it elsewhere. I'd post a link, but I'm too 'new'.

Sorry!:o