What would you do?

easterbunni

Hi all

We have £300 per month to put away to pay for things like car insurance etc, and we also have £200 to pay off 0% credit cards over the next year. (Figures have been simplified slightly to protect the innocent...! )

What would you do? Save some and pay off some, or do what I feel like doing and just pay off £500 from the cards each month, then save £500, knowing it's all ours...

Debt_Free_Chick

Difficult one - do you have any savings at all for emergencies?

easterbunni

Debt_Free_Chick wrote: »

Difficult one - do you have any savings at all for emergencies?

Not any more! Just bought a dieselly puff to save the fuel bills...

But then we sort of have emergency cash in the form of 0% cards...

Debt_Free_Chick

easterbunni wrote: »

Not any more! Just bought a dieselly puff to save the fuel bills...

OK - voted now

But then we sort of have emergency cash in the form of 0% cards...

You can get cash off your credit cards, with no interest charged ...?

easterbunni

Debt_Free_Chick wrote: »

OK - voted now



You can get cash off your credit cards, with no interest charged ...?

I have a card which lets me do money transfers to my bank, same as balance transfers at 0% deals

MoneySaverLog

Depends on what rate card you have if you have a 0% APR card then it would make sense to save and pay the card off later, otherwise if it's a higher rate than what you'd get in savings then it's worth paying the card off first.

MoneySaverLog

easterbunni wrote: »

I have a card which lets me do money transfers to my bank, same as balance transfers at 0% deals

Yes but you also have to factor in any charges for this which would probably be more than what you'd get in savings interest if you were to do this.

CLAPTON

just pay the minimum (plus a £5) on the card and save the rest in the best instant access saving a/c

a little before the 0% deal runs out then pay in full

why wouldn't you do that?

Ultrasonic

CLAPTON wrote: »

just pay the minimum (plus a £5) on the card and save the rest in the best instant access saving a/c

a little before the 0% deal runs out then pay in full

why wouldn't you do that?

I agree (so I've not voted in the poll). Doing anything else would cost money in lost interest and give less flexibility if money were needed in an emergency.

The only reason I can think of to NOT do this would be if the OP didn't think they would be able to leave the money in a savings account and not spend it?

Debt_Free_Chick

easterbunni wrote: »

I have a card which lets me do money transfers to my bank, same as balance transfers at 0% deals

But with something like a 3% handling fee ...?