Clear the card or pocket the cash - advice needed

opinions4u

greyville wrote: »

Thanks.

One thing I don't know is - say I chose not to pay it all off.

Imagine that I have a wet fish in my hand and I am slapping it around your face. Or I'm throwing a bucket of cold water over you. Stop having these thoughts about keeping debt!

Repeat twice, out loud "debt is bad, paying interest is madness". Then say it first thing every morning when you wake up - twice. Repeat again as your last act before bed time.

Is there any way I can increase the amount that comes off the balance?

For example, say I upped my repayments from £100 a month to £200 a month, would it take off £130 off the balance or more?

of course paying £200 would reduce the balance by more.

But you have just been handed a fabulous opportunity to get debt free. Take it. It's absolute madness not to.

Then, as others have rightly stated, turn your £100 a month payment to the credit card in to a savings account. Then never borrow again.

Life is being good to you here. Don't waste the opportunity!

Barbeduk

Loved that last post, gonna make that my morning mantra!

Like everyone else says, pay it off! Then if you want to continue using a credit card, ditch that one and get one that gives you points/ cashback and set up your dd to pay the full balance each month.

carrielovesfanta

Personally i would choose a , but I can see that the feeling of seeing that much money going in then out could feel like you aren't getting anything for it.

Effectively choosing a is like getting a 100 pound a month pay rise! However if you feel that paying the whole card off at once is too much, I would suggest maybe keeping a couple of hundred and treating yourself and paying the rest off the card.

Apologies for any crazy spelling. Am typing on my phone!

421Valerie

Always pay of all debt where you pay a higher interest rate than what you receive for your money.

cutestkids

Without being at all unkind here just thinking out loud but the question that this OP asks really hits home as to just how people get into huge amounts of debt in the first place and the sheer lack of understanding about what you are actually getting yourself into with taking out credit cards etc.

There really needs to be better education regarding budgeting and finance in general preferably starting in primary schools and then by the time people are out in the adult world they can make informed choices and actually understand finance.

Just to reiterate not meaning to be nasty or unkind in any way, a few years ago I would have asked the same question and it has been this site that has helped me understand better about debt.

VitaK

How we all dream of an once in a lifetime game-changing oppotunity like this. Even when you pay it all off, you still have a respectable £400 left.

January20

Pay the card off. There is nothing you could spend the money on that will have a bigger impact on your life financially, and if you don't, I would bet anything that you will definitely regret it.

greyville

Thanks for all the useful advice...I'm in the process of paying it off.

The annoying thing is that my next paying comes out tomorrow - before the company sends me the money that I'd use to pay it all.

I want to cut out the middle man and just pay it off now, but I doubt they'll let me, though I'm checking.

ellesbellesxxx

DEFINITELY pay it off! Consider the PPI money money that if you hadn't paid it on PPI should have been paying off that card.