Paying off credit cards
September 15, 2015 at 10:12 am #38798
I know it’s not the right way to go about things and the money saving expert Martin Lewis would have kittens, but I would rather see savings in my account rather than pay debt off. I don’t know why, but I feel happier and more secure knowing I have money in the bank, even though I’m paying more in interest. Anyone else feel the same?September 15, 2015 at 3:56 pm #38820
Hey, I do, I like to have money in the bank. It is like a security blanket really. I know it sounds daft if you have some debt but how I look at it is, if you can manage to pay off the debt (although you will probably be skint for ages) without having to touch your savings then that’s great. I would try and do that, then after the debt is paid off and you have been used to that money going out every month, I would keep adding those ‘would be’ payments to my savings and top that up. Win. win all round I saySeptember 16, 2015 at 11:31 am #38824
If you don’t want to use your savings and you can afford monthly payments for you credit card why don’t you keep doing a 0% balance transfer until the debt is paid off? At least then you won’t have to incur any interest on your remaining balance?October 7, 2015 at 1:29 pm #39186
I don’t know why but I never thought of a 0% balance transfer? I think that’s the best as at least I’ll be paying the debt off quicker. Maybe I could start paying it more and still having a little savings and gradually get used to it?October 20, 2015 at 12:55 pm #39368
What I’ve learned (the hard way) – try get a 0% balance transfer and pay it off ASAP. You WILL actually feel better paying it off than you will seeing money in savings. I used to think like that and now I’m debt free, I feel much better than having debt with savings. I’d still keep a credit card for emergencies or to put a £10 every month and pay it off for a good credit rating. But honestly, try and pay it off!!
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