Moral Dilema - Save or Pay Debts

FIRSTTIMER

Hi,


I have £40k in Premium Bonds as a House Deposit but £7k on a Barclaycard that's 0% for another year. Do I pay of the Barclaycard with premium bonds money (my house deposit) or should I just continue paying it off. The Barclaycard stresses me out as its 0% purchases too (which I often use) but then again I don't want to have only £33k in savings and build it back up.


What would you do?!


Thanks

vlad

Cut the card into a 100 pieces so you can't use it, keep paying off as much as you can over the next year, then review the situation.
Happy christmas

FIRSTTIMER

haha thanks.....so basically keep the bonds and pay the visa off!

gettingtheresometime

Have you been able to save the £40k because you've been buying stuff using the card and not paying it off?

When do you plan on buying a house?

If it's before the year is up then potentially you're facing a mortgage & a £7k debt (as it stands)

Personally I'd pay off the card & pay off any purchases each month

FIRSTTIMER

I am looking to buy next summer....

Ches

I have learned a new way of looking at this sort of situation that almost mirrored my own. You actually only have £33k of assets as you have £7k of debt. Each £1k you pay off the cc adds to the total assets you have in savings. Hope this makes sense.

Pixie5740

Since the cc is at 0% it doesn't particularly matter if you use your savings to pay off the card ad then save up £7k again or keep all your savings and throw £7k at the card before the 0% offer runs out.

If you keep spending on the card then cut it up. Whatever balance is on the card when you apply for a mortgage will be taken into account when calculating your affordability so the lower the balance the better.

FIRSTTIMER

thanks....agreed.....I will be keeping the savings and just putting all my income to the card....hopefully paid off by Julyish

poppasmurf_bewdley

FIRSTTIMER wrote: »

Hi,


I have £40k in Premium Bonds as a House Deposit but £7k on a Barclaycard that's 0% for another year. Do I pay of the Barclaycard with premium bonds money (my house deposit) or should I just continue paying it off. The Barclaycard stresses me out as its 0% purchases too (which I often use) but then again I don't want to have only £33k in savings and build it back up.


What would you do?!


Thanks

You say you have £40k in premium bonds. How much have you won in the last few months? Any winnings should be put towards paying off your Barclaycard, which you should aim to settle completely without touching your capital.

FIRSTTIMER

I have won £50/75 every month since February 2015 which isn't too bad

sourcrates

FIRSTTIMER wrote: »

I have won £50/75 every month since February 2015 which isn't too bad

Really ???

Never won a bean on it myself, mind you I don't have 40k of bonds, so that may be why lol