paying off interest free debt from my savings

irish_angel · 24 February 2005 at 2:46PM

Hi
1st time to try this,hope i get it right,not very computer literate!!
can anyone advise.... I transferred my existing credit card debts to barclays interest free card last Sept and still have 2100 outstanding and other interest free debt of about 2000 would i be better to pay this off from my savings of about 8000 or not
thanks in anticipation.

fairenoughclough · 24 February 2005 at 2:58PM

You don't state when your interest-free period ends, pay it off just before they start to charge you interest

Reaper · 24 February 2005 at 3:05PM

Welcome to the boards, irish angel.

The answer depends on how disciplined you are with money and how good your credit rating is.

If the answer to both is good then the most effecient thing you can do is to apply for more 0% cards and keep transfering the balance over to them. That way you can leave the money you were going to pay it off with in your savings account earning more interest.

Do make sure you don't dip into the money earmarked to pay it off. One day you will run out of people wanting to offer you 0% cards and will have to pay the debt. Some people doing this like to put it in a different savings account so that it doesn't get mixed up.

robnye · 24 February 2005 at 3:15PM

if you are paying the minimum on the 0% cards and you still have a few months before the 0% period finishes

then you are still making money on the your savings

therefore leave the money in the savings.......

ceegee · 24 February 2005 at 3:44PM

This is only a personal opinion, nothing to do with the interest issue, but personally I'd rather get shot of the debt, just because it IS debt. I'd rather use my savings to pay it off, then I'd owe nobody anything and I'd still have £3900 in savings. But as I said, that's just my opinion.

nearlyrich · 24 February 2005 at 4:14PM

I have an interest free debt on a Barclaycard 0% till next January, the min payment is 2.6% so the amount owing will come down over the next few months. I worked out how much I will need to pay it off if I don't get another 0% deal using This Site and I have transferred that to a 5% interest savings account.

If you look at the credit card thread there are lots of experienced Stoozers who have ££££££'s stashed away in offset mortgages and all sorts of savings plans which they have borrowed on 0% credit card deals.

I am going to lock this thread here and copy it to the CC board as you will no doubt get some sound advice from the experts there.:)

paying off interest free debt from my savings

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