Savings Vs 0% Credit Card

CA13KCT

Hi All, Hope this is the right section of the forum to ask this question?

I have enough savings to completely pay off my 0% credit card to make me "credit card" debt free.

BUT DO I,

clear my 0% Credit card (12 months 0%) with my savings which will reduce my savings to £1000 left,
OR
DO I, leave it as is, keep my savings and continue with my 0% credit card for another 11 months and pay it off monthly and before the 0% term expires.

Which is best? I am so confused what is the best option? Any advice?

DrEskimo

Entirely up to you.

Financially, it would make more sense to put the savings in high interest accounts (takes some effort to cycle them around different accounts mind...) and earn more than the cost of the debt.

However, you may feel more at ease by clearing the debt, particularly if you have concerns about not clearing it before the interest free period ends, or that it will encourage you to spend more than you want to budget for.

EimearF

I asked this exact questions a few weeks ago. I chose to pay off the card, it was the best decision. Knowing ill be debt free on monday (payday) has made me feel free and ive actually slept much better.

I know the numbers say save, but the mental health benefits of not owing money have been enormous.

But as mentioned above, its up to you.

middleclassbutpoor

Easy

Pay off your credit cards

Close credit card account fully down

Cut up cards and dispose of.

Start using the monthly payment you would have used to make your payments and put into a regular saving account.

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

enthusiasticsaver

It depends on how you feel about credit card debt and whether you are anxious to get shot of it. If you intend to take out a mortgage in the next year I would get rid but otherwise as you can clear it within the 0% period I would put your savings in as high interest account you can find and continue to pay the credit card off monthly. Do not take the savings below £1k if you do decide to use the savings to repay the credit card.