Can I still call myself debt-free?

seven-day-weekend

....after nearly four years of owing no-one a bean, I am going to pay the car insurance by credit card.

The reason for this is, my husband has been offered a nil interest balance transfer for nine months, so we are going to pay it on one card and then transfer it, and then pay it off in nine monthly instalments.

That way we can have the interest on our savings for a bit longer.

We do have savings, so it's not that we can't afford to pay it - in fact I have saved up for it over the year specifically, so I have the money without dipping into long-term savings.

But, he will owe the credit card money for nine months.

So back to my original question - are we still able to call ourselves debt-free?

GeorgeUK

NO

You will now need to take on the title of Stoozer.

Although if you put it on an 0% interest for purchases card and kept the money you intended to pay it back with in a high interest account until payment was due, that may make you a pro stoozer.

Snaggles

Hiya SDW :wave:

Is there a balance transfer fee? Sometimes it's 0% but they charge you a small percentage to do the transfer. It's not as much as paying by instalments would be, but it might be more expensive than using your savings and losing a bit of interest.

If not, sounds like a great idea....and if you are swapping from one card to another, that would probably make you a card tart too....

So there you are...a tart and a stoozer, all in one day! :rotfl:

seven-day-weekend

Hey....Never been a tart before! Or a stoozer either!

I'll ask my husband to check whether there is a fee, thanks!

full-time-mum

seven-day-weekend wrote: »

....after nearly four years of owing no-one a bean, I am going to pay the car insurance by credit card.

The reason for this is, my husband has been offered a nil interest balance transfer for nine months, so we are going to pay it on one card and then transfer it, and then pay it off in nine monthly instalments.

That way we can have the interest on our savings for a bit longer.

We do have savings, so it's not that we can't afford to pay it - in fact I have saved up for it over the year specifically, so I have the money without dipping into long-term savings.

But, he will owe the credit card money for nine months.

So back to my original question - are we still able to call ourselves debt-free?

Personally, I would consider myself honary debt free but if, and only if, the money to pay off the card is invested in a savings account ready to pay it off at the end of 9 months. We have had debts of up to £10,000 at various points but the money is always available to pay them off.

I tend to think of being in debt as money that can't be paid off right this second, but that is just my take on it.

If you have a mortgage, then you are in debt, but if you were to ask the average bloke in the street if he was in debt, I don't think he would take the mortgage into account, he would think of personal loans and ccs.

Gemmzie

Of course you're debt free. Stoozing is using good credit. 0% deals when you have the money to pay it off isn't debt!

seven-day-weekend

Thanks everyone for your advice - we have made the transfer- there was a fee but we decided that it was worth it for the nine months interest-free credit.

full-time-mum we don't have a mortgage any more, so going on what others have said the fact that we have more than enough money to pay this small debt entitles us to still call ourselves debt-free.:j

Thanks all once again for your help and avice.

postingalwaysposting

Definatley debt free. I did the same a few months ago, I brought a bed on 0% and had that and some in savings so I still called myself debt free as if the worse comes to the worse I could pay it off

Anyways how are you hun? its been ages since we spoke

seven-day-weekend

posting, yes fine, it is good to speak/write to you again.

I don't often post on DFW board as there are posters there who have far more experience in SOAs etc than me, although I do lurk sometimes.

I tend to hang around on Pensions and Benefits (if you see what I mean:rotfl: ), those two boards and Silver Savers as I am ancient.

Thanks for your input and speak to you soon.

Now my car insurance and ferry crossing is on 0% interest until March, I just have to make sure I remember to pay the balance off at that time!:eek: I've saved up for them both and will just make the minimum payment for eight months and pay the balance end February (to be on the safe side).

beanielou

Still debt free & a stoozer~Sounds good to me!

SarahNeedle1872

Definately still debt free...... actually technically, now you are a stoozer!

Sarah x