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Original poster

would this debt worry you?

9 replies

yvww · 22/03/2023 07:24

Trying to decide if I should pay it off. It’s interest free and I have savings to pay it but it would leave me with 6k and I’m currently on mat leave. The debt is 6,500, paid monthly interest free, on a credit card. It was used towards a car purchase so it’s not from frivolous spending.

OP posts:

Divebar2021 · 22/03/2023 07:29

Well I’d be niggled but not too concerned if it was interest free. What do you need to pay for on maternity leave though? If it’s bothering you why don’t you pay £2k off ( or some other proportion) so the amount doesn’t look so high while still giving you the cushion for maternity.

pippinsleftleg · 22/03/2023 07:32

I just moved 4K of cc debt to a 0% credit card - I’ll keep it as debt until I can no longer get a 0% deal.

so more or less the same as you and no, it doesn’t worry me.

pippinsleftleg · 22/03/2023 07:33

Should also add I have the money to pay it off but have put it in a savings account that pays interest - I would lose out by paying it off the zero 0% debt

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Divebar2021 · 22/03/2023 07:35

In which case I’d leave it ….

ACynicalDad · 22/03/2023 07:36

It might worry my knowing the impending cost of childcare. Depends on other outgoings and household income. It was a period of life we managed with interest free cards, but at least we started at 0!

Changingplace · 22/03/2023 07:38

How long is the interest free period? I wouldn’t worry too much, but I’d keep an eye on when the 0% interest runs out and make sure you switch to another deal before it ends.

Xrays · 22/03/2023 07:39

Completely depends if you can afford it or not. I don’t think debt is as awful as Mumsnet generally tends to think it is. I think the main thing is whether you could cope / pay it off if your circumstances changed. Dh and I don’t have a mortgage (own outright) and have fairly low living costs so we have debt on 0% cards we use, it’s about £7k and we just pay a chunk of it off every month. Doesn’t bother us at all. People have far higher mortgages etc…!

WalkAwaySugarbear · 22/03/2023 07:40

I was all set to say all debt is bad, pay it off ASAP. But you are stoozing. (MSE term) I'm doing the same, £5k on a fee free 0% credit card, the minimum repayments of £50pm for 24months in a 3% account that the DDs come out of and the rest of the balance in a higher paying account. It'll earn me £280 at the end of the 24m for very little effort.

The only risk you'll have is if you need the savings on Mat leave.

premicrois · 22/03/2023 07:42

It would depend on income for me. You say you are on may leave but that could be anything from SMP to full pay. Also if you have a partner or live alone would make a difference to me.

If you share household costs, have a decent current account and fair ish maternity pay I would probably chuck £3k-£4k at the credit card. If you live alone and are on SMP I would keep paying monthly and hang on to the savings. There are so many in between these extremes to consider too.

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