25k, 4K debt, want to buy a house.

Alexland

greenglide wrote: »

Often there is a fee when you get the money and then it become interest fee.
It is a long time since any of my card suppliers offered me a true "nil cost" interest free deal.

Cash advance with existing provider is unlikely to be the best deal. Usually worth taking out a new card for best cashback, term, etc and building a balance with your everyday spending.

Alex

Smellyonion

PasturesNew wrote: »

I'd pay it off.... it's done then.

Also, the date it is fully paid off is the starting date for a "clean record" showing in your history.

The amount you can earn from savings is so little, it's not worth trying to compare that against the 0% of the debt. £4k for one year, savings interest you're looking at just a handful of ££ "gained".

Better to just have a completely clean slate now ... and get it over and done with.

Not worth the hassle... just pay it off. Fresh start. Nothing in your way to queer your pitch when you're ready to buy.

Dont agree with this. It doesnt make financial sense to pay it off.

The most financial sense is to pay off the minimal amount during the 0% period and to leave the cash that you would have spent in interest paying accounts.

People often forget about inflation. Your 4k will be worth £100 less next year with an inflation rate of 2.5%

If you really want to play the inflation game, you could keep the credit cards ticking over at 0% (using transfers) for a long time. Think 10-15 years. Obviously this may not be practical.

Alexland

Smellyonion wrote: »

If you really want to play the inflation game, you could keep the credit cards ticking over at 0% (using transfers) for a long time. Think 10-15 years. Obviously this may not be practical.

You don't even need to do balance transfers - we just take out a new 0% purchases credit card every 18 months for our normal spending and pay off the old one gradually (enough each month to be repaid by the end of the offer) while building a new balance on the new one. We have enough cash on the sidelines earning interest to repay early if required.

Alex