WWYD - credit card

[moutonfou]

We've had a difficult year, DH was unemployed for several months and I had to support us both. Got into a cycle of putting stuff on my credit card, then paying it off, then having to put more on it as a result of paying it off! But always had a policy of paying off in full each month (even if I was already putting stuff on it for the next month) so have never paid interest.

DH has a job now so the light is at the end of the tunnel but we're not quite there. £500 to pay off this month and £300 to pay off next month - and that's if I manage not to use it this month, which is unlikely because £500 is a big amount to miss in a month.

WIBU, now we have a steady income again, to not pay it off in full, take the hit on the interest (think it's only say, £10 or something), and pay the £800 off over say, 4 months rather than 2 months?

I know it's quite usual, but I'm nervous as I've never not paid off in full. But we are living so sparsely and part of me just wants to remember what it feels like to finish a month with money left over, even if there is still money on the credit card.

WWYD?

Tbh I would try and pay it off in full.

Is the job permanent?

You do sound as though you're the type who wouldn't let it slide for longer than a few months, so £10 in interest isn't too bad.

However, I am a bit confused - his could you afford to pay it off every month when you didn't have much money, but now you have a regular income, you can't? Is it because you want to stop the 'paying it off in full, putting everything on it again' cycle?

Can you get a 0% balance transfer and that will give you some breathing room to pay it off over a few months.

I would transfer on a 0% offer, there's usually a fee but likely less than the interest.

Have a look on MoneySupermarket - loads of 0% cards on there. Good luck!

Def balance transfer

I'd call the credit card company and ask if they can reduce your interest and finance charges. They normally give you something. I'd then pay it off as planned. Yes this month will be very tight but then next month will be much easier and in September you can start putting some money aside in your savings.

There's no 'right' or 'wrong' - it's whatever feels better for you.
If you've struggled for months and want to treat yourself to something nice or just want to not be skint for this month, then you just need to decide if that treat is worth the 'extra' £10 it will cost you in interest, or, if you prefer to just last out a couple more months and then know the 'treat' is free. Personal choice.