Balance transfer or use savings?

[northernballer]

Just after some thoughts please as not sure what to do for the best.

Currently got 8k in savings which is less than I'm comfortable with buy hey ho.

Last year we moved house and to avoid dipping in to my savings I put 1.5k on an interest free credit card, planning to pay it off with my bonus this year which is usually the same amount.

However, I now need to pay around 1k for some medical treatment for DD (been waiting well over a year on the NHS with no sign of it starting). I'm also fairly sure I will be made redundant at Xmas so trying hard to build up my savings before then.

My question is would I be better using my bonus to pay off my credit card as planned and then not saving anything to fund the treatment, or transferring the balance on to a new credit card? I've found a no fee one with Virgin which is 0% for 12 months.

I'm very debt averse but I'm wondering if this migjt be a sensible way of managing my money? Also how does a balance transfer work in practise? Is it all done automatically?

My pension is in a good position so.long term I think I am OK just nervous about the next couple of years.

I have a few thousand on an interest free card which needs to be cleared next year, I'm currently trying to build savings up after buying a house. I could easily clear the card but I'd rather keep saving as the debt isn't costing me anything. I'd prefer to have no debt and savings but at the moment I'm focusing on saving

I would rather put it on a 0% personally, but consciously budget to pay off atleast half before the term is over and then its less if theres not an option to move to another0%

You can be debt adverse and still utilise the options out there to maximise your money.

You will be earning something on your savings, so any debt at 0% means you are maximising your earning potential on the money you have.

As long as you're not adding to the debt, a balance transfer to 0% sounds like a good move in your situation.

If you apply for the card and are successful, you will then be asked if you want to transfer a balance (which has to be in your name and I believe from a UK bank) you put in the details of that card and the amount the transfer and your new card will essentially pay off your old one leaving your debt on the new card.

Thanks all.

I think I'll opt for the balance transfer then if I'm not made redundant at Xmas I can payi it off then. If I am I can deal with it at the end of the term.