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    • bike saving expert
    • By bike saving expert 11th Apr 18, 10:14 PM
    • 77Posts
    • 13Thanks
    bike saving expert
    gradually building up debt
    • #1
    • 11th Apr 18, 10:14 PM
    gradually building up debt 11th Apr 18 at 10:14 PM
    Hi wanted a bit of advice

    So i had 3k on 0% that ended last month this has been Balance transfered with no fee to a new card an currently no other debt. I have 3 months in which I can balance transfer to the new card and the card is 0% for 25 months with no fee to transfer.

    Im planning on going on holiday shortly my question is should i transfer the new debt onto my new Balance transfer or just repay. (I have the cash to pay the whole holiday.

    In pure logical interest terms balance transferring seems to make more sense but on the flip side I don't like the feeling of having that large debt against my name and gradually adding to it. The min payment will be about 50 once I have paid for the holiday any advice welcome.
Page 1
    • Gary_Dexter
    • By Gary_Dexter 11th Apr 18, 10:28 PM
    • 902 Posts
    • 495 Thanks
    Gary_Dexter
    • #2
    • 11th Apr 18, 10:28 PM
    • #2
    • 11th Apr 18, 10:28 PM
    Whats more important to you?

    A one off holiday or clearing your debts?
    • bike saving expert
    • By bike saving expert 11th Apr 18, 10:47 PM
    • 77 Posts
    • 13 Thanks
    bike saving expert
    • #3
    • 11th Apr 18, 10:47 PM
    • #3
    • 11th Apr 18, 10:47 PM
    in reality i can afford to do both comfortably

    I suppose in reality the best way to consider was if i had a spare 200k what would i do and i would keep the debt and invest the cash always ensuring i keep enough cash to repay the debt at any point
    • Ben8282
    • By Ben8282 12th Apr 18, 5:28 AM
    • 2,209 Posts
    • 977 Thanks
    Ben8282
    • #4
    • 12th Apr 18, 5:28 AM
    • #4
    • 12th Apr 18, 5:28 AM
    I assume you will pay for the holiday using the old card and then do a balance transfer to the new card? Obviously you can't directly pay for the holiday with the new card as this would be a purchase and not a balance transfer.
    As to whether you should do this or not.
    The important point is not to build up further debt. If you are going to use the original card for purchases and repay in full each month and you have the money to repay the 0% balance stashed away somewhere and you are sure that you can resist any temptation to spend it, then yes go ahead and do this.
    However, consider the total credit limits of the cards that you hold. You mention having large debt against your name. Consider the situation in these terms. If your total available credit was 50K and you had 5K of debt, the amount of debt would appear very low. If your total available credit was 10K and you had 5K debt, you would be using 50% of your available credit. If your total available credit was 6K and you had 5K debt, you would be using 83% of your available credit which would look very bad indeed.
    However, unless you actually intend to apply for further credit, that won't really matter too much.
    • MEM62
    • By MEM62 12th Apr 18, 11:56 AM
    • 1,527 Posts
    • 1,153 Thanks
    MEM62
    • #5
    • 12th Apr 18, 11:56 AM
    • #5
    • 12th Apr 18, 11:56 AM
    Im planning on going on holiday shortly my question is should i transfer the new debt onto my new Balance transfer or just repay. (I have the cash to pay the whole holiday.
    Originally posted by bike saving expert
    How good is your self discipline? If you will clear the debt by the end of the interest-free period and are earning on the cash you would have spent on the holiday then it is OK.

    However, most will feel that the cash they have retained is free money and find some excuse to spend it, in which case it is not such a prudent decision.
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