Clear a 0% interest card?

dantheman2010

Hi all,
I have £1.2k on a 0% interest credit card which has until December until any interest would be charged. 

I now have managed to get a few thousand in savings and can afford to settle the £1,200 balance now. 

Just looking for some feedback on whether to keep the £1,200 in savings and just pay off £100+ per month until cleared at the end of the year or just pay it off now and be done with it. 

I guess there is no right or wrong answer but just wondering what you would do?
Other than this card and my mortgage I only have one other debt which is also 0%. 

Thanks

Yorkshire_Pud

Pay it off now and get on with your life. Or hang it out and buy a box of Belgian chocolates with the interest you’ve made. Unless you forget to pay it off. Then pay them lots of interest.

maxximus75

~I've just paid mine off 6 months early.  I have had the money sitting in my savings account for a long time but as the interest rate on my savings it now useless, it was easier just to pay it off.

I guess it comes down to if you'd rather see £1200 more in your savings for the next 9 months or a 0 balance on your credit card?

You could always pay it off now and then re-direct whatever you was paying towards your credit card, into your savings account?

Dandytf

Iv'e used 618 transfer from since closed aqua to new rbs 0%15 months.
1st statement re paid 100 pounds, next payment late April.
I'm comfortable re paying at this rate- only 5 months max, maybe sooner.
OP depends what's comfortable and affordable.
thanks

phillw

On principal I would put the money somewhere that earned me interest, even if it were £1. This is moneysavingexpert after all. I actually paid my last 0% credit card off £500 a month using my halifax reward card, which gained me £5 a month.

Your credit card company won't buy you a box of chocolate for free for paying it off now.

But put a reminder to pay it off on time & make sure you stop using the card after the statement before the rate drops as you can end up paying interest (you only get the standard months interest free on a credit card if on the previous statement you had payments that were greater than the statement balance the month before that & as you have a balance at 0% then that doesn't apply).

wiseonesomeofthetime

I am in same position and have been paying fixed amount each month, just above minimum, while balance sits in Skipton earning a few pennies. Also good for credit history.

Will clear a full statement early though, to avoid any mishaps in timing.

Fingers burnt a decade or so ago when settled in full but timing wrong, thus incurring interest for two more statements 🤦‍♂️

PRAISETHESUN

For the sake of a tenner paid in pennies over the next 9 months, it's probably not worth the effort, but I agree with everyone else about the principal of the matter here. As long as you are definitely going to keep aside the cash to pay it then by all means stooze away form a very meager reward, otherwise pay it off and be done with it.