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Original poster

paid off my credit card......now what ?

24 replies

crikeybill · 28/06/2012 10:57

Utterly silly question I know. I've finally managed to pay off my credit card. The silly thing now is what do I do ? I have a standing order set up paying out to it each month. As the balance is now zero do I cancel it ? If I don't what happens to the money ?
I'm quite tempted to ditch the card, but at the same time its nice knowing its there just in case ? What's better credit rating wise ?

OP posts:
5inthebedPPA · 28/06/2012 10:58

Cancel the standing order otherwise you're money will go on the card.

if you want to keep the card, can you give it to someone to keep for you for when you are in dire need?

I'd be tempted to cancel the card tbh.

BonkeyMollocks · 28/06/2012 11:00

Cancel the standing order or change it to put that money into a savings account. It may help you on a rainy day. :) And if you haven't missed it whilst paying off your card then you won't miss saving it.

I would ditch the card. You will only be back in the same position sometime in the future.

No idea credit rating wise, but I imagine if you don't get into debt than thats a pretty good start :)

PhyllisDoris · 28/06/2012 11:00

Stop the standing order, and get rid of the card if you can't trust yourself to not run up a big bill.

If you can trust yourself, pay off everything you buy on it when the credit card statement comes in, each month. Once you're confident you can keep to that rule, you could relax a little, and spread the payment over 2 months.

Personally I think credit cards are evil! Far too easy to buy things you can't afford and run up huge debts. My rule is that if I can't afford to buy it outright, I don't buy it on credit. I always pay things off either immediately (if I'm just using the card for convenience), or within 2 months if I have a genuine reason for spreading the payment.

redlac · 28/06/2012 11:03

Remember and delete it as a payment card from Amazon etc, I paid my cc off now it's creating back up cos I am addicted to amazon

Original poster
crikeybill · 28/06/2012 11:03

Yes I'm tempted to cancel it. It's taken me two bloody years and a big chunk of salary each month so I'm clearly not using it. Plus I don't want to be tempted again !!
Do I just phone them and say im cancelling ?
Dh thinks I should keep it and let the money pile onto it each month, he Saud it will improve my credit rating, but how does that work ?
I might as well just keep the money each month on my account surely !

OP posts:
worldgonecrazy · 28/06/2012 11:04

Cancel the standing order. Can you get the credit limit on the card reduced to something manageable that you know you could pay off in around 3 months if you have an emergency? Maybe around 4 times what your standing order is currently for?

BonkeyMollocks · 28/06/2012 11:05

Credit cards are evil as Phyllis said.

Get rid of the card!

Its all very well having a 'good credit rating' but when you get into debt again and can't pay it of.....

Just phone them and say you want to cancel the card and don't let them sell you anything else!!

daisyrain · 28/06/2012 11:10

I would just put some of what you would have been paying into a savings account, by standing order. So you have spending money to treat yourself :)

Ponders · 28/06/2012 11:12

is it a standing order or a direct debit?

if a SO you can just cancel it yourself, you don't have to tell them

if a DD they won't take a payment if nothing is outstanding

& definitely divert those payments into a savings account now if you have managed without them Grin

Ponders · 28/06/2012 11:14

I've seen the suggestion that you freeze your card inside a plastic container of water & keep it in the freezer. Then it's available, if you need it in an emergency, but you wouldn't be getting it out on a whim!

NoComet · 28/06/2012 11:24

Hide the card and standing order to a savings account.

Then a really hard look at your life and spending habits.

If you think you can use a card and pay it off every month, apply for a cash back one that earns you money!

If you know you'll get carried away, cut it up. Card debt is very expensive!

AmazingBouncingFerret · 28/06/2012 11:26

Treat yourself to nice a expensive holiday...

Just kidding.

Well done and posters upthread have some good advice so I wont repeat it.

ChopstheDuck · 28/06/2012 11:27

cancel the standing order, some ccs charge you for being in credit with them!

I would second the idea of a savings account instead. At least then you could get interest too.

CogitoErgoSometimes · 28/06/2012 11:57

I say keep the card for emergencies, set up a Direct Debit mandate to pay off the balance in full each month so that you can't run up a balance, then open a Cash ISA and put the 'spare' money you now have into it each month. Credit cards are very useful if managed responsibly.

CogitoErgoSometimes · 28/06/2012 11:57

"Dh thinks I should keep it and let the money pile onto it each month, he Saud it will improve my credit rating, but how does that work ?"

That doesn't work. All that happens is that you have a positive balance on the card earning no interest when it could be in a savings account earning mone.

Seona1973 · 28/06/2012 12:24

check if it is a standing order or direct debit. If it is a direct debit then no money will be taken unless you have a balance on the account. If it is a standing order then just cancel it.

pancakeboobies · 28/06/2012 19:36

Could you cut the card, not tell the bank. Then, if you really needed it (and could wait a week) you just call them up, tell them it's lost, then they'll send you a new one.

Original poster
crikeybill · 28/06/2012 19:48

Thanks for all your advice. I know what I'm like with money, eventually I will run the card up again if I keep it. Soooo....I'm going to cancel it, and transfer the money I've been paying each month into a little savings account for the dc. Thanks ladies.

OP posts:
oshuk · 28/06/2012 20:11

I kept mine but reduced the limit to next to nothing, just enough to pay for an emergency journey or something. I won't use it again if I can help it.

gabsid · 01/08/2012 14:23

Set up an ISA and pay into that instead - and just have a debit card.

GirliePink · 21/08/2012 18:01

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MrsHoarder · 21/08/2012 18:15

Get yourself a regular savings account where you have to pay money every month and can't touch it. Its amazing how quickly you can build up a lump sum that way. Don't leave it on the cc: you don't get any interest that way.

MousyMouse · 21/08/2012 18:22

I would keep it, as for bigget purchases (+100£ I think) there is extra insurance for the bought item.
maybe switch to a different card that has better benefits like cashback.
set up an automatic payment that clears the card automatically each months.
and yes to an isa/savings account.

you are doing really well, you must be so proud!

TalkinPeace2 · 21/08/2012 20:24

Convert the standing order to pay the amount you can already afford into an ISA (tax free savings) account.

Unless you can ALWAYS pay off credit card balances in full every month they are poison.

If you pay the minimum on a card it takes 18 years to pay off.
AVOID.

But saving that same amount of money each month will set you up properly for the future.
Be strong.

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