Plan to clear stooze debt on cc

noclaf

Hi all,

I have an £8-9k balance (debt) sitting on a 0% cc. The 0% deal finishes in Oct 2019 so I am starting to think about next steps to continue paying this down.
Whilst I can pay the balance in full I have a wedding this year so am hesitant to hit my cash reserves. I typically pay £500 per month to keep the balance at least £1000 within my cc limit so the balance typically will never go below £7k.

Santander recently released a 0% card with no balance tsfr fee for 27 months. My thoughts are to pay down a small chunk of the balance (e.g:£2k) and then transfer the o/s amount to the Santander card and pay down at a slightly lower rate per month.
Does this approach seem ok?
Fyi I have no other debt bar a student loan and approx £45k across various current accounts and a LISA plus contribute less than 4% of take home.salary per month to a vanguard tracker

[Deleted User]

If you have £45k cash then just pay it off?

noclaf

!!! wrote: »

If you have £45k cash then just pay it off?

Hi Gary,

Whilst that's the obvious option I have my wedding coming up this year and need to change my 15 yr old car soon before it falls apart midway on the M25..
Both the above will hit the cash reserves hence was thinking to simply lock in another 27-30 month 0% deal and continue chipping away. It might be more a psychological barrier...I have had this cash reserve sitting there building up and this year it will take.a hit so makes.me.bit more.jittery...

eskbanker

noclaf wrote: »

contribute less than 4% of take home.salary per month to a vanguard tracker

If you have multiple imminent substantial demands on your cash reserve, to the extent that they're compromising your ability to repay debt, you perhaps ought to reconsider whether it's sensible to be investing at the same time. Leverage isn't a bad thing in the corporate world but effectively borrowing to invest at a personal level is generally best avoided, especially if/when liquidity becomes an issue....

[Deleted User]

noclaf wrote: »

Hi Gary,

Whilst that's the obvious option I have my wedding coming up this year and need to change my 15 yr old car soon before it falls apart midway on the M25..
Both the above will hit the cash reserves hence was thinking to simply lock in another 27-30 month 0% deal and continue chipping away. It might be more a psychological barrier...I have had this cash reserve sitting there building up and this year it will take.a hit so makes.me.bit more.jittery...

£45k on a wedding and a car seems a bit much to me but OK.

You can go with your original idea of getting the Santander card, but all you are doing is shifting the debt from one place to another, plus you won't know what limit you will get on the Santander card until you apply so it may not cover the full balance anyway.

noclaf

I should of.probably stated, the 45k is not all earmarked for the wedding and car.
Car fund will be no more than 5/6k..I have no interest in having a brand new car or paying silly monthly figures for leasing etc wedding will likely hit me.for around 15k.
I agree about the investing while in debt point however It's less than 4% of my monthly take home salary so v conservative.
I won't be taking any additional debt such as loans or cc'd while paying the.balance down. In fact I previously.never used cc'd but only started as a means to build my credit rating and take advantage of stoozing and cashback e.g San 123 ac

shiny76

noclaf wrote: »

transfer the o/s amount to the Santander card and pay down at a slightly lower rate per month.
Does this approach seem ok?

As long as your current CC is not through Santander, it seems OK*

* ignoring the other issues raised above!