Advice on first time credit card

drl13

Hi all,

I have a few questions which i really would love some advice on.

I have just graduated with a good masters of engineering degree. I am however planning to go work in america for around 9 months from November onwards. Since my parents have helped me out, I'm currently in only around £4k debt to the loans company (because thankfully i went to uni in scotland). My student overdraft is pretty much maxed out right now at £2k. (I think my graduate overdraft reduces by £500 each year from now now on).

Currently I am just getting a job in an office for some temporary 3 month work. However, I'm worried I won't be able to save enough money to go away with my girlfriend.

Do you guys think it is a bad idea to take out a 0% interest credit card and set up a standing order for the minimum monthly repayments? This would mean that when I came back in say, June 2014, I would be able to get a job and pay off the debt before the 0% interest runs out. I would be quite hopeful that I could get a reasonable paying job.

I don't know if this is a really irresponsible idea, advice would be much appreciated.

I have no idea though what my credit rating is like or if I can even get a 0% interest credit card.

Also another question is what are the fees associated with 0% credit cards? I have no idea what the fee actually is on?

Cheers

Tjrw1985

So your going to work for 3 months, to go away with your girlfriend for over a year.

How exactly are you going to afford the minimum payments on your CC?

drl13

Sorry didn't make it clear. We are going to work for around 9 months. We only need the money to get there and get set up, we estimate around £3k each for everything. The kind of office temporary job I'm looking at right now will not pay enough to save that amount in the next 3-4 months.

I thought minimum monthly repayments were around 1%? So I figure if i borrow £1k then I'm only paying £10 a month while I'm away? This could be covered by having a direct debit with some safety sterling left in my bank here.

YorkshireBoy

drl13 wrote: »

I thought minimum monthly repayments were around 1%? So I figure if i borrow £1k then I'm only paying £10 a month while I'm away?

1% plus interest is a popular repayment calculation by many lenders, although some are 2.5-3% (and even 5% in some cases).

However, many of those using 1% plus interest will have a 'subject to a minimum of £25' clause.

Shouldn't be a problem, but just thought I'd mention it.

RuFFCuT_RetRo

I would just delay going away for a year - I know you have good intentions of clearing the debt fast but it doesn't always work like that.

You're in enough debt as it is, just delay it a year, save your wages and use money you actually have or you're going to ruin your finances - which will screw you over for years to come.