How long is it ok to leave a balance on a credit card?

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I used my credit card (at the time it was fully in credit nothing on it what so ever!) to pay for a PS4 last Friday.

There's now £500 on it with £1,000 available.

I plan to pay off £100 this month when the payment is due, I expect to get £200 in Christmas money in December (as per every year even though I'm 25 still lol) this will be used to put on the card too.

This will leave £200 give or take on the card, I don't plan to make any big payments until the end of January / February where I plan to pay off the balance in full when Christmas is out the way.

Is this ok? Are there any pitfalls in staggering the payment like this? As long as I pay at the least the minimum.

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  • Al1x
    Al1x Posts: 1,653 Forumite
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    It sounds ok to me. You will probably get charged interest unless you have a card that is interest free on purchases, might be worth finding out how much that will be.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
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    I used my credit card (at the time it was fully in credit nothing on it what so ever!) to pay for a PS4 last Friday.

    There's now £500 on it with £1,000 available.

    I plan to pay off £100 this month when the payment is due, I expect to get £200 in Christmas money in December (as per every year even though I'm 25 still lol) this will be used to put on the card too.

    This will leave £200 give or take on the card, I don't plan to make any big payments until the end of January / February where I plan to pay off the balance in full when Christmas is out the way.

    Is this ok? Are there any pitfalls in staggering the payment like this? As long as I pay at the least the minimum.
    That's fine. I would suggest paying off the card in less time than the item you purchased lasts for. A PS4 should last a few years so make sure it's paid off before you buy the next model.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • PenguinJoshy
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    Even if I was to pay £100 p/m off that'd take me to May. I'd be happy with that.

    I was thinking about paying it off all in one go with my wages. Then sort of living off the card but be careful with spending.

    Basically spend £100 less every month so, again by May, it'd be clear.

    I like the idea of paying it off every month, even if this leave me with no disposable income I just feel good knowing I'm not any where near maxing it out or leaving it to build interest up.
  • PenguinJoshy
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    For eg. Pay it all off then use the credit card up to £400 throughout the month...next month pay that off then use £300 on that card and so on until you pay it off.

    If the above makes sense.
  • dotdash79
    dotdash79 Posts: 1,069 Forumite
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    For eg. Pay it all off then use the credit card up to £400 throughout the month...next month pay that off then use £300 on that card and so on until you pay it off.

    If the above makes sense.

    This way will more than likely avoid interest, just don't use it for cash withdrawals.
  • grumbler
    grumbler Posts: 58,629 Forumite
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    Set a DD for minimum payments - that's it. Your only concern is the interest they charge you.
    Make extra payments whenever you want.
  • PenguinJoshy
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    dotdash79 wrote: »
    This way will more than likely avoid interest, just don't use it for cash withdrawals.

    I tend to never use cash when out and about anyway. More convenient to pay via card.

    Plus when I'm out drinking, if I use cash I put change in fruit machines so a drink often costs me £10 because I pay for my drink then gamble...I've found by paying by card you pay for your drink and I've saved a lot of money doing this.

    I take the odd £20 note out now on pay days and have a gamble. I love playing the fruits but it's hard to stop, especially when you've had a few beers!
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