Should I use my new virgin card to pay off my overdraft

class2ldn

Yeah I guess so.
We may look at stoozing aswell but not sure again on the repayments as say I put 3k into a tesco account that pays interest, do you set the repayments so that it's all paid off in the 0% period just say 24 months so 125 a month? I guess you could set it lower and move the balance but the worry is not getting a card for whatever reason.

SeduLOUs

class2ldn wrote: »

Yeah I guess so.
We may look at stoozing aswell but not sure again on the repayments as say I put 3k into a tesco account that pays interest, do you set the repayments so that it's all paid off in the 0% period just say 24 months so 125 a month? I guess you could set it lower and move the balance but the worry is not getting a card for whatever reason.

No. The idea is that you make the minimum payments (to keep as much of the money in your interest earning bank account for as long as possible), and then pay the bulk off (with the savings) right before the 0% ends.

Or if you want to keep the ball rolling, at the end of the period you open a new balance transfer card, and just shift the balance somewhere else to keep the money in your account even longer.

You should never have a problem repaying as if you are truly 'stoozing' then the amount you have in savings will always be equal to or greater than the amount you owe on the cards at any given moment.

class2ldn

Yeah I see. The tesco account I was looking at opening would be just for savings, no dipping into it so with the interest at 3% on 3k I'd get £90 a year so 180 in total would be the extra cash, then use the account to pay off the card what's left.
Would it be best to repay each month from that account or my normal one?
So I could do it with this virgin card, I've got a 6k limit
Anyway to find out what the minimum is before you get the balance on the card?

Chrysalis

yes if the CC is cheaper credit, which I expect it probably is.

years ago overdraft's werent a bad deal, but e.g. now my bank has upped the interest "and" charge a fee for even using a "authorised" overdraft. So if I was in this situation I would very likely shift the debt to a card if I couldnt settle it.

SeduLOUs

class2ldn wrote: »

Yeah I see. The tesco account I was looking at opening would be just for savings, no dipping into it so with the interest at 3% on 3k I'd get £90 a year so 180 in total would be the extra cash, then use the account to pay off the card what's left.
Would it be best to repay each month from that account or my normal one?
So I could do it with this virgin card, I've got a 6k limit
Anyway to find out what the minimum is before you get the balance on the card?

It doesn't matter where you pay it off from, as long as you know where you are up to and don't end up spending the money you've borrowed (then you wouldn't be stoozing, you'd just be in debt).

Minimum payment amounts would be detailed in the T&C, usually somewhere on the statement (normally worded something like £5 or some %age of the balance, whichever is higher). Really it doesn't matter all that much anyway. If it's a 0% purchases card, you can top it back up with more spending after the minimum payment has been made (obviously taking care to never go over the limit, which could scupper the whole 0% offer).

class2ldn

Would it be wise to use the virgin card to pay off the overdraft and for stoozing?
Could we use it pay off part of our mortgage?
We've got a halifax mortgage at the moment with a rate I believe of 4.89 and paying 1124 a month.
If I was to pay off 5k in an overpayment it would knock us down to 80 ltv when we remortgage. Repayments with the card would be 217 a month to clear it before the offer ends which isn't too bad.
Good or bad idea for mortgages?

JimmyTheWig

class2ldn wrote: »

Good or bad idea for mortgages?

Can be good if done right.
I wouldn't do this until experienced with Stoozing, though.

class2ldn

Yeah not sure I want to be repaying that amount at the moment anyway. Need to get some bits for the house anyway so may just use that card for now and to pay of my overdraft so i can shift banks easier.
Thanks for the help much appreciated

class2ldn

Just wanted to ask in regards to the halifax account and the 5 quid a month. I see from other threads it's classed as income not interest but I'm a high rate tax payer, will it be taxed before I get it or do I have to declare it on a tax return form.
My partner has already switched but she's a lower earner so only pays 20% tax. Do we both have to declare it or is the tax part sorted first?

MallyGirl

Halifax £5 is a reward not interest so doesn't get taxed by Halifax. Not sure if you should declare on tax return