Advice

[Lappy]

Right here's the thing.

I have 4k in the bank for the rest of the deposit on my new place which is not due to be paid until closing in Nov/Dec/Jan.

I have a credit card bill of €3,700.

Do I ?

Pay off the card now and save 800 quid or so a month so I have €4,000 again soon?

Or keep paying off €1,000 a month off the card as I have been doing for the last 2 months and keep my 4k safe where it is?

 

[ClubMan]

Advice

Clearing the CC balance now will save you on interest costs. I personally would go for the first option. Borrowing (especially high cost borrowing such as a credit card) while maintaining savings generally doesn't make sense.

 

[sun_sparks]

How much interest are you paying on the c card and gaining from the savings?

If you are paying €1000 off the credit card per month now, then you should be able to save at least €6k before November.


Edit: Crossed with ClubMan.

 

[Lappy]

It's a BOI Gold Advantage 13.9%.

Savings are making very little if anything.

 

[irishpancake]

why not transfer the credit card balance to an interest-free 5/6/9 month card, as in UB Zinc or Tesco.

That way you could clear your CC debt over the interest-free period, making sure you don't use the card for anything else during this period, and maintain your savings.

 

[Lappy]

The idea crossed my mind alright. The Gold card has a slighter lower interest rate though just for after it would've been paid off.

I bit the bullet there a few minutes ago and put €3,500 off the card.

I'll easily save 4k in 6 months.

Credit cards...they really are the means to an end. And I'd be one of the more sensible people with money... but I still managed to max it out at €4,500!!

 

[ClubMan]

Credit cards...they really are the means to an end.

If the end is medium/long term credit then a CC is the wrong means!

And I'd be one of the more sensible people with money... but I still managed to max it out at €4,500!!

Your confidence in your sensibility with money may be misplaced so. Check out some of the budgeting and debt management posts in the key topics section.