What to do?

[moneyqu]

I owe £1100 on an interest free (until March) credit card.

I have recently had a car repair bill which cos £1500 and was not paid with the credit card. I used my savings which has left me with just £250 in savings.

I have a spare 1k this month, should I:

1. pay credit card in full
2. top up savings to 1k so I have a buffer and pay the rest to the credit card then chip away each month

to add to this I am expecting to have to spend around £500 this month on a plumbing repair - so this might influence a decision?

Put £500 into savings, earmark the other £500 for your plumbing bill.

From next month onwards pay £110 a month (or as much as you can, if less) off the credit card and it will be cleared by next March.

Savings before credit card. You'll earn interest, while the card is interest free. You can pay the card off at around £100 a month or so to clear it by the end of the interest free period.

Things like car repairs/plumbing work as well as insurance and other planned outgoings like Christmas and holidays will always crop up so ideally you should have a few thousand earmarked to cover ups and downs in monthly expenditure.

Highest interest savings account you can find, and then pay off £110 per month on your cc.

That’s assuming you can be really disciplined and not dip into the earmarked £1,100 in your savings for anything else between now and March.

Thanks all. I was leaning to adding to savings too!

until recently I haven’t had a job which has allowed me to save so I’m keen to build up a pot. I’ve been good at putting some away each month without touching it (until this large repair) so I am
confident I won’t keep dipping in.

I was thinking to add my plumbing bill to the card too and paying it off monthly whilst it’s interest free

Thanks guys!