Pay off 0% Credit Cards with Mortgage Borrowing? 8 October 2022 at 11:55AM in Credit cards 1 reply 132 views

shbrooks

We recently Remortgaged and received an extra £115k to renovate our property and pay off some existing Credit Cards.  Now that we have this money, having paid off one credit card which was incurring interest, I'm now wondering whether the pay off our other three 0% Credit Cards (total approx £11k) to wipe the slate clean and free us up from paying the monthly minimum payment (roughly £220/month) or to let them run their remaining interest free period (15, 17 and 24 months).  This would then leave us more money available to renovate.

I'm currently swaying towards wiping all the debt so it doesn't stretch us in 15-24 month's time, but would appreciate anyone else's thoughts on the matter.

eskbanker

shbrooks said:

I'm now wondering whether the pay off our other three 0% Credit Cards (total approx £11k) to wipe the slate clean and free us up from paying the monthly minimum payment (roughly £220/month) or to let them run their remaining interest free period (15, 17 and 24 months).  This would then leave us more money available to renovate.

I'm currently swaying towards wiping all the debt so it doesn't stretch us in 15-24 month's time, but would appreciate anyone else's thoughts on the matter.

You need to pay off £11K, either in one go now, or at £220 per month over 15-24 months with three final payments - if you do the latter then you can earn interest on the money in the mean time, so if monthly repayments are manageable then that would deliver the best return overall.