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Am I missing something ...
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MikeyPGT
Posts: 535 Forumite
** Also posted on the Credit Cards Board to (hopefully) cover all the bases ...
I have 2 credit cards - one with £2700 of debt and the other with £3750 (credit limit £4000, interest rate 18.5%). The £2700 is a long standing debt and has just become a no interest no fee account as long as I meet minimum repayments they have said this will not affect my credit score. My plan is to continue to pay the minimum (plus a few extra quid to round it up) and to pay £250 - £275 a month into the other account.
However, I am short of 5 years on NIC (pension payable from June 2027) not working or likely to be. My current plan is to use the 18.5% interest account to pay for the missing years (via Curve which apparently enables payment to HMRC for a 1.5% fee) in 5 x 5 monthly instalments. I appreciate that this will increase the payback time for the extra pension but am banking on making it past 75 in some shape ...
Years available to purchase 2020/21 - 2023/24 (all at £923 except 2023/24 which is £907.40. I am assuming I will need to purchase 2024/25 as current estimated pension to April 2024 is £203.91 with a forecast of £223.65 if I contribute to 5 April 2027.
Aim would be to pay off the 18.5% credit card by the end of 2027.
Can anyone see any fatal flaws in my logic? I am currently in receipt of a NHS pension and a basic rate tax payer.
I have 2 credit cards - one with £2700 of debt and the other with £3750 (credit limit £4000, interest rate 18.5%). The £2700 is a long standing debt and has just become a no interest no fee account as long as I meet minimum repayments they have said this will not affect my credit score. My plan is to continue to pay the minimum (plus a few extra quid to round it up) and to pay £250 - £275 a month into the other account.
However, I am short of 5 years on NIC (pension payable from June 2027) not working or likely to be. My current plan is to use the 18.5% interest account to pay for the missing years (via Curve which apparently enables payment to HMRC for a 1.5% fee) in 5 x 5 monthly instalments. I appreciate that this will increase the payback time for the extra pension but am banking on making it past 75 in some shape ...
Years available to purchase 2020/21 - 2023/24 (all at £923 except 2023/24 which is £907.40. I am assuming I will need to purchase 2024/25 as current estimated pension to April 2024 is £203.91 with a forecast of £223.65 if I contribute to 5 April 2027.
Aim would be to pay off the 18.5% credit card by the end of 2027.
Can anyone see any fatal flaws in my logic? I am currently in receipt of a NHS pension and a basic rate tax payer.
Debt Free Wannabe by 1 December 2027
Satisfied customer of Octopus Agile - past savings on average 33% of standard tarrif
Deep seated hatred of Scottish Power and all who sail in her - would love to see Ofgem grow a pair and actually do something about it.
Satisfied customer of Octopus Agile - past savings on average 33% of standard tarrif
Deep seated hatred of Scottish Power and all who sail in her - would love to see Ofgem grow a pair and actually do something about it.
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