Could do with some advice please

marisco_2

Last year a few emergencies came up with my house and car. I ended up with about 2.5k of debt spread over my overdraft and credit card. Since November I have cleared a third of this by cutting back as much as possible. My overdraft is now cleared and I am back on track with my curent accounts.

Six weeks ago I transferred the remaining debt onto a 0% card, which lasts for 25 months. My aim was originally to clear it all as fast as possible. I am now thinking though of paying a set amount per month and paying it off steadily in just over a year. Putting the rest of the money I could throw at the debt into an emergency fund. I dont want problems to creep up on me again and make a mess of my budget.

I am thinking of paying a set amount of £100 pm, which is way over the minimum repayment. I also dont plan to spend on this card unless something dire happens. Would using a credit card in this way impact badly on my credit score? I cant see it would except that the card company may not like that I am using them for basically an interest free loan and not paying them a penny over what I owe.

Chemical_Thundra

It shouldn't impact you negatively providing you pay on time every month and having a safety net is a wise move. As long as you are on 0% interest I can't see any pitfalls in your plan.

FatVonD

A lot of people on here seem to advise to pay £1 over the minimum payment (I believe it doesn't do your credit record good to be seen to be only paying minimum payments, not sure why, I'd have thought that's exactly what they want!)

I've been shuffling debt from 0% card to 0% card for years now and it hasn't (so far!) affected me being able to get another, in fact as fast as I clear one they send me a letter offering to let me balance transfer another. I think I've had 3 deals from Santander so far now so, no, I don't think they care that you're using it as a low-cost loan! (Remember, they've already made 3% on it up front.)