Hi All
For the first time ever, my CC debt is up to 2K. My current 0 per cent deal is coming to an end but I have a few savings in a mini cash isa - should I try find another card with 0% balance transfer and keep paying off at a rate of a hundred quid a month as I have been doing, or just pay the thing off from savings and try to keep a limit on my spending - which I do anyway, this debt has accumulated over the last 3 years and 3 cards!
Thanks
How much do you have?
You seem to be contradicting yourself by saying that your debt has reached 2k but yet you say that you are paying it off at 100 per month - which is it?
It looks like you have found this site at just the right time - I would pop over to the debt free wannabee board and make a statement of income and expenditure.
If you take action now you have a chance of getting out of debt.
To answer your question I would advice you to use most of your savings to pay off any card that incurs interest.
If you can transfer the debt to another 0% card with a reasonable Balance Transfer fee (less than 3%) then I would do this.
You should be making 5% plus in the ISA so you should be earning more on your savings this way.
If you cannot get another 0% deal, then I would use the ISA money to pay the debt off rather than pay an extortionate standard variable rate.
Good Luck.
Thanks for the replies - sorry I confused the issue Jones, but I think Nick's answer saves me going through a long explination post. Looks like M&S are doing a good card at the mo.
Heading over to theother board you suggested now!
Thanks again!
Unless you have a fixed rate Cash ISA it is unlikely that all ISA providers will still pay over 5% in the near future.
There is another meeting of the Bank of England next week to discuss interest rates - I would expect another 1/2% ratecut.
