Advice

L

Lappy

Registered User
Messages
77
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?
 
Advice
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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.
 
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.
 
It's a BOI Gold Advantage 13.9%.

Savings are making very little if anything.
 
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.
 
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!!
 
Lappy said:
Credit cards...they really are the means to an end.
Click to expand...
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!!
Click to expand...
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.
 
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