Should I get a 0% interest free credit card?

[coldlighthappier]

Hi All,

First post so I apologise if I haven’t done this right! I currently have a credit card with 2450 (150 a month is being paid by someone else over the next 3 months) so really I have 2000 to pay off. My issue is I am also having to renew my car insurance soon and I can save over 200 by doing the one big payment so not sure if I should do this.

I guess my main question is that in order to pay as little interest possible would it be a good idea to get an interest free credit card or is that bonkers? Owing this much money is really getting me down and I am struggling to see a way out. I am also into my overdraft by about 500.

I have had a very expensive few months with having to move house randomly due to being evicted so I had to pay out over £2k as I also had no furniture.

I also have a problem in that I know I have no money but cannot keep spending it. I really need help on not only the best way forward with how to get the debt down but also to manage my money. I cannot speak to anyone about this as I have nobody to talk to.

If anybody could help or has any ideas then I would be very grateful!!

Thank you so much for any help you are able to give 😊

I also apologise if I have used the wrong terminology for any of this, I have very limited knowledge on all of this and realise I probably know less than I think I do

You could try to get a 0% transfer card but you need a plan to pay it off.

Good podcasts:
The Dave Ramsey Show
Meaningful Money
Money to the Masses

You need to do a cash flow plan so that you start living on less than you earn.

I was going to say yes get one it's a good idea until you said you know you have no money but keep spending it.

So getting another card where you can spend more and have more debt doesn't sound like a good idea for you.

In general, it's a good idea but you must resist the temptation to spend any more on it. I do you've got £2000 to transfer, there will be a fee usually of around 3%, then it's interest free after that. So £60 fee but you're saving yourself about £500 in interest over, say, 2 years.

Yes, but destroy the card when you get it. Get rid of all your other credit cards.

Set up a standing order to pay it off each month.

You have to be very very firm with yourself.
I often use 0% cards for big purchases. I then work out how many payments I need to make before the interest kicks in, divide the amount owed by that number and then set up a standing order to pay it monthly. Don't be tempted to pay the minimum payment only!
I then cut up and throw away the card so I can't use it.
If you can be sure that you can do this and not spend on it then ok, go ahead.
You owe £2400 and say your insurance is £1000 giving a total of £3400. A 15 month card would mean payments of £226 a month. Can you afford that?

I've just transferred a similar amount to a Sainsbury's credit card with 30 months interest free, but I've cut up the card to avoid adding to it...they are great but you have to be disciplined!

Get yourself to the money saving expert website.

Stop spending, there are great tips on there. I did it for two years, just stopped on everything except essentials, real essentials. Cleared my debts and now hav3 savings.

If you get th3 card then transfer your money and then cut them all up. It’s not money on those cards it’s debt. And in your case, not goos debt.

Wow thank you everyone from your replies!! I think I was being a bit harsh on myself last night having a mini panic. When I said I keep spending my money I don't go overboard, I don't put any money on my card and am paying off the card for about £150 a month and also I'm not as much in my overdraft as I was, so I don't think I would spend more on a card if I did get one.

A few people have said to get it and then cut it up which is a really good idea if I do decide to get one.

The reason why I mentioned the insurance is that i could save £200 by paying it in full but I wasn't sure if that would be a good idea or if I should pay it monthly.

Somebody mentioned a figure of £226 a month which I think is manageable as I pay off at least £150 a month a month and if I add the £120 I would have been paying for insurance onto that then it works out to a bit higher.

When I say 'don't put any money on my card' I mean that I other than the purchases I had to make when I was moving, I wouldn't do any extra shopping for myself.

Also somebody mentioned podcasts so I have taken a note of those and will have a look at them thank you!

The standing order for a set figure is also a really good idea and I think I am definitely going to do that whether or not I get the card 😊

Having a credit card can also help your credit rating. Sign up to clearscore so you can keep track. Mine was quite low but is now excellent.

used wisely, credit cards can work for you. But you need to be disciplined.

I currently use clear score and find it very useful, I have a good credit score and a credit utilisation below 50% at the moment so wouldn't want to go above that as it can lower your score apparently

Does clear score cost money? If it does, cancel it and use Moneysavingexpert credit club, which is free.

Getting a credit card to pay your insurance can be a good idea, if it saves money, but your eventual aim when you have paid off your credit card debt should be to have the money in advance to pay it when you take it out.

When taking out credit cards, make sure you understand the difference between 0% purchase and 0% balance transfer cards, you often can't do both on the same card, or they don't have the same long interest free period. Some balance transfer cards don't have fees, so look for those if you qualify.

For everything money, Moneysavingexpert is your friend. It can be, quite literally, lifechanging.

Their money makeover is the place to start, to systematically overhaul your finances and signpost to help with just about everything you need to manage your money better.

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