Pay off 0% card or save money in ISA?

MustStopSpending

I have a 0% deal til April 2008 on my credit card. I am going to pay £150.00 a month off it and also put Quidco, Ebay earnings towards it so it'll be cleared before rate runs out.

Should I pay the minimum each month and I save the extra money in my ISA and pay it off in bulk or pay the £150.00 off the card monthly? I know it feels good to see the balance decreasing but I also think it'll be a good challange to see the savings get up to the amount I owe.

Any thoughts?

ifstar

If you think you can be disciplined enough then it makes more sense to pay the mimimum to the card and stick the rest in an ISA. If you have any doubts that you might decide to dip into the ISA to buy something then pay the money to the card.

It does sense to pay it into an ISA, as you will earn a bit of interest on it and this will give you a little more to pay against the card at the end of the term.

MustStopSpending

I think I'll pay it into the ISA, if I feel tempted, which I'm sure I won't, I'll just withdraw it all out and pay it off!

Thanks for your advice.

ifstar

:-)
It will also be good for you because you will get to see your savings grow and although you will pay onto the CC when the rate expires, it should get you in the mindset for saving.

Another alternative may be to pay the £150 towards your loan and keep shifting your credit card around 0% providers. This should see your loan end a lot sooner but your CC balance will be the one that takes longer to clear.

You would need to check to make sure the loan would allow you to do this without any penalties etc. But you could save a bit of money doing it this way.

MustStopSpending

I have found it difficult to get 0% cards so need to clear this one in case I can't transfer the balance. Also I have closed all my credit cards as I clear them as I sometimes slip off the wagon and spend on them cos it's not real money (ha ha ha!). When it comes to spending my cash I am far more well behaved!

Save in ISA and pay in bulk is the way forward for me I think!