Is it a good idea?

Gem_84

Just some advice really, as Christmas approaches and I find myself wondering how on earth I'm going to afford to buy anyone anything I came up with an idea and wondered if anyone has done it, or if anyone thinks it is a good idea.

I've seen ads for cards with 0% interest for a certain period and thought about getting one to pay for Xmas then pay it off in the New Year before any interest was added.

Comments please oh and what is the best card to get, thanks

chinbergs

Yeah, it'll be like an interest-free loan - though make sure you make the minimum payment each month and pay the amount off in full at the end of the term (call them to find out the exact date this needs to be paid).

I think Halifax is the best - 15months for 0%. So you can pay it off over more than a year! http://www.halifaxcards.co.uk/drtv/index.html

Stephen_Leak

If you are really financially disciplined, you can finesse this by paying the minimum payment by DD, then paying the debt off into a high interest 6%+ savings account (IceSave, ICICI, Sainsburys). Then, just before the end of the 0% period, pay off the card in full from this. This way, you actually earn interest instead of paying it. OK, it may not be a fortune, but the satisfaction of knowing that you've screwed over the system, instead of vice versa is priceless.

The important thing with these 0% deals is to get the end date in writing and make sure you pay it off beforehand. One day over, and ...

Gem_84

Well I've applied for the Halifax card, see if I get it. Thanks for your advice, heres hoping for a merry Christmas!

CLAPTON

Just remember..... that with a CC its very tempting to spend too much on the presents because you dont actually see the money go.

and you have to pay it off... now if you have no spare cash to save for xmas how will you find the cash to pay it off?

Better to save up as much as possible and stay within that budget for this year and once the new year comes start a regular savings account to save for things like xmas, birthday present as these things are fairly predictable.

LandyAndy

CLAPTON is right. If you've no money now where is it suddenly going to come from in the new year?

Perhaps explaining to people that you can't get them much this Christmas is a better approach.

If you are in debt already why do you want to be in more?

If you aren't in debt why do you want to start?

Paying for Christmas on a credit card is not just a bad idea it's crazy. I'm astonished other MSE'rs haven't leapt down your throat for even thinking about it.

chinbergs

LandyAndy wrote: »

Paying for Christmas on a credit card is not just a bad idea it's crazy. I'm astonished other MSE'rs haven't leapt down your throat for even thinking about it.

It's only crazy if the OP is likely to get swept under by it all. It could be that he/she's in the position to comfortably pay off the bill for Christmas over 15 months with the Halifax credit card deal - in which case, he/she's been able to take advantage of a good offer and has been able to afford the Christmas he/she wanted to provide. No harm in that.

However, if money is pressured I don't believe in spending unnecessarily on things one may WANT, not "need".

I also think Christmas - in financial terms - is horrendous. I hate the idea of people buying me presents I don't really want with money they certainly don't have. I really am a man of simple needs and much prefer low key christmasses (and any other occasion).

LandyAndy

chinbergs wrote: »

It's only crazy if the OP is likely to get swept under by it all. It could be that he/she's in the position to comfortably pay off the bill for Christmas over 15 months with the Halifax credit card deal - in which case, he/she's been able to take advantage of a good offer and has been able to afford the Christmas he/she wanted to provide. No harm in that.

However, if money is pressured I don't believe in spending unnecessarily on things one may WANT, not "need".

I also think Christmas - in financial terms - is horrendous. I hate the idea of people buying me presents I don't really want with money they certainly don't have. I really am a man of simple needs and much prefer low key christmasses (and any other occasion).

Agreed, but the tone of the OP's post [quote: I find myself wondering how on earth I'm going to afford to buy anyone anything. unquote] suggests otherwise.