Put all wages onto credit card?

MrJester

Hi, I just had a thought, would it be a reasonable idea to work out what my typical monthly outgoings are e.g. bills and what else I would need cash for in my current account, add a bit extra for emergencies, and then all other income from my wages put onto my high interest barclaycard?

Its near 2k, with interest adding every month, having put most of my money onto it and then make purchases with it as necessary surely this would reduce the interest that would accumulate each month, and would also go some way to stop any unnecessary spending until I pay it off in full.

Negatives to this idea would possibly be Barclaycard lowering my limit randomly? Though they usually hope you spend more anyway. And of course not having cash at hand if I ever really need it, but 90% of my purchases are via card purchases and cash in my current account is mainly there just for bills.

Thoughts?

YorkshireBoy

JoeJester wrote: »

Thoughts?

My first thought is why are you paying interest? Is there something (lack of income, debt issues, poor credit history, etc) that's preventing you transferring the balance to a 0% card?

Whether Barclaycard will reduce the limit is an unknown quantity, but the chances of them doing so are increased if one or more of the following apply:

1. You're near your limit and have been for a while.
2. You have debt issues elsewhere (they'll know from the monthly CRA feeds they take).
3. You've a history of only making minimum payments.
4. The debt is increasing month on month.

MrJester

YorkshireBoy wrote: »

My first thought is why are you paying interest? Is there something (lack of income, debt issues, poor credit history, etc) that's preventing you transferring the balance to a 0% card?

Whether Barclaycard will reduce the limit is an unknown quantity, but the chances of them doing so are increased if one or more of the following apply:

1. You're near your limit and have been for a while.
2. You have debt issues elsewhere (they'll know from the monthly CRA feeds they take).
3. You've a history of only making minimum payments.
4. The debt is increasing month on month.

I have another card with 0% too already, couldnt transfer it all and poor credit right now means I cant get another.

OK so I have spent a lot of my time with the Bcard very near its limit, and am only just starting to lower it, with a lot of that time making only minimum payments. So from your info, it would seem like it could be a bit too risky to put as most of my wages onto it, if they reduce my limit then I would be in trouble.