No. I'm assuming they're based in Ireland?I guess the question is - is there a benefit to putting that extra €500 onto the credit card at the start of the month, and spending the money from the credit card? Would it help to reduce interest?
Ah, yes it's charged daily, sorry I was looking at utilising an interest free period. But you'd be looking at saving about 32 euro per year interest if the 500 was paid at start of month and spent half way through.I guess I was thinking interest may be charged daily and by having the €500 on it for a short time, each month, may reduce interest payments?
This is a good point. Bank of Ireland for example have started an initiative allowing customers to convert credit card debt to personal loans.You could contact the card company and see if they can reduce the interest.
Also, make sure to make the payment to credit card on the day you get paid. There might be a few days interest to be saved each month. It's not going to be a huge amount either.Nothing to write home about but every little helps.
I did not know they were doing that. Good tip.This is a good point. Bank of Ireland for example have started an initiative allowing customers to convert credit card debt to personal loans.
Bank of Ireland launches initiative to help customers reduce their credit card debt - Bank of Ireland Group Website
Initiative is part of Bank of Ireland’s Financial Wellbeing programme As part of the programme the bank is leveraging behavioural science to deliver positive outcomes for customers struggling to manage their finances Handling your borrowings comfortably is one of the key drivers of financial...www.bankofireland.com
Your credit card balance is quite high and the 13.5% interest would eat up alot of your 500 euro repayment. If you load the 1100 as your first suggestion you may never pay off the card. Banks would see you as a person that would be in a cycle of spend and repay a very small amount on the card. If you have defaulted then that would go against you but you can correct this. Your icb report will show the last 18months(i think) so you can try to correct this.In the example above the credit card company will neither provide a loan replacement or a reduced rate and so alternatives were being viewed for making savings on interest. You guys seem to suggest there's a €30ish saving to be had.
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