I think I know the answer to this...

Willowpop

I would get the tv(though I don't have tv sets in the bedrooms so I wouldn't….but if I was you I would…if that makes sense!?) put the rest into savings and get the earrings as a treat when you are debt free.

lazer

Don';t pay off your credit card early - minimum payments only as it's 0% and then save the amount you would pay off the card otherwise.

Then freely use the money you have made on interest by doing this to treat yourself!

I would save at least half the bonus - you have no emergency savings, so you need something

nellis10

Half off card half into savings

The reason I say half off CC, half in Savings, is only if you do not already have an emergency fund for those unpredictable events.

if you have an emergency fund, then it all goes off the CC.

Teacher2

There's only one answer to this:- use the bonus to pay off as much of your credit card debt as you can. As Martin Lewis is always pointing out, you can't get a savings' interest rate anywhere near what you are charged for credit so you will be quids in. In fact, use your £500 savings to pay some more off. Then, use your money to blitz the debt as soon as you can and start saving. The earrings can be a reward and present for saving up. If you don't do it this way you'll be reinforcing the wrong habits and will get into more trouble.

SeduLOUs

Teacher2 wrote: »

There's only one answer to this:- use the bonus to pay off as much of your credit card debt as you can. As Martin Lewis is always pointing out, you can't get a savings' interest rate anywhere near what you are charged for credit so you will be quids in. In fact, use your £500 savings to pay some more off. Then, use your money to blitz the debt as soon as you can and start saving. The earrings can be a reward and present for saving up. If you don't do it this way you'll be reinforcing the wrong habits and will get into more trouble.

But she's already stated that the CC is interest free for another year at least. In this scenario would be better to save (and earn interest on it) and only pay off the card just before the 0% ends.

LittleMissGiggles123

Savings until the 0% is up. At least you earn interest on the savings.

joeturner

Put it all in to a 5% account. Pay off the minimum balance from this account to the credit card. Reason being, you never know how secure your job is...At least if you have money available to clear the credit card should you lose your job!