Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
Relationships

Mumsnet has not checked the qualifications of anyone posting here. If you need help urgently or expert advice, please see our domestic violence webguide and/or relationships webguide. Many Mumsnetters experiencing domestic abuse have found this thread helpful: Listen up, everybody

Original poster

Should I stop paying off more than the minimum on my credit card so i can 'live better' and go on holiday?

89 replies

user1499590110 · 30/07/2017 11:46

I already posted a thread and im worried im now going to sound like a journalist!!! i'm not. i promise!

basically the background is that i went on a date and this person was talking about his ex being totally shit with money and how she 'thought it was ok to live off 100 a week' - i.e. she wasnt bothered about advancing her career or having any plans to save etc. i found his comments a bit offensive.

these conversations have made me worry about money and have spoken about it with friends. i try to save 100 a month and i live off about 90 a week (which i also have to buy food with, but this excludes travel so i can do the odd thing like go to the cinema). i earn around 30k. should i stop paying off more than the minimum on my credit card (it has 6,500 on it!), and live a bit better instead? my friends think it is crazy that i put so much back into my credit card when it is interest free for the next 2 years, but i feel like it is reckless not to try and pay off the maximum so that it is paid off when the interest free period expires. i havent been on holiday for 2 years because i cant afford it, but having spoken to my friends, their view is that i can afford it im just handling my money badly, and i should transfer the credit if i havent paid it all off in 2 years...

OP posts:
abbsisspartacus · 30/07/2017 11:48

Pay it off

timeisnotaline · 30/07/2017 11:48

God no pay off the credit card. If I couldn't pay off my credit card every month I'd never go on holiday because to me that says you can't afford it.

Mum2jenny · 30/07/2017 11:50

You are doing the right thing, aim to clear your credit card within the 2 years so you don't have to pay any interest.

Original poster
user1499590110 · 30/07/2017 11:50

i do pay off a chunk each month (i.e. a few hundred), but i could get away with paying much much less, and then at the end of the interest free period transfer the balance of whatever remains to a new plan.

OP posts:
Teddy7878 · 30/07/2017 11:53

I'd have a year or two of being really frugal to pay it off, and then once you're debt free you'll have more disposable income to save up and do fun things. Paying off the interest each month is just throwing money down the drain and will ruin your credit rating over time

TwitterQueen1 · 30/07/2017 11:54

You OWE 6,500 pounds. You cannot afford to 'live better and go on holiday'. You do not have the money to do this!

To spend more money and not pay off your debts is utter stupidity.

wait until you are not in debt - which you are now.

Hopefully you understand by now that you owe thousands of pounds and that you are in debt and that you cannot afford to spend more. Have I got through to you?

Rainbowqueeen · 30/07/2017 11:55

Pay it off.

Living better is living within your means and not on credit. What would you do if you lost your job? Living better is being able to sleep at night and not worrying about money

I was wondering when I read your post what you purchased on your credit card and whether you think it was worth it now.

Original poster
user1499590110 · 30/07/2017 11:56

I am not paying off interest, i pay off more than the minimum each month by a long way. so technically i could have it paid off within a few months. my friends seem to think this is an odd way of doing this, considering i could give myself an extra 200 a month to help a lot and still have no impact on the credit cards.

OP posts:
Figgygal · 30/07/2017 11:56

Clear the debt but doubt about It

Could you look at getting a loan to do it the repayments will be at a much more favourable rate

Original poster
user1499590110 · 30/07/2017 11:59

Rainbowqueen - i do think it was worth it as it hasn't cost me anything to borrow the money, and i needed to buy my car which i did through a money transfer. this was hugely cheaper than getting a loan and in the long run is cheaper than buying a car on finance. i don't regret the decision, i am interested in the view on how to manage it, given that my friends are of the view that they would never pay more than the minimum.

i agree that ANY debt is not good - but unfortunately i needed a car to do my job - also appreciate i could have had a cheaper car, but didnt want to buy into lots of problems and can sell the car at any time if push came to shove. my priority was taking my job ar the time and i am very glad i did.

OP posts:
EyeHalveASpellingChequer · 30/07/2017 12:00
Original poster
user1499590110 · 30/07/2017 12:00

just to clarify, this debt is costing me nothing and it wont cost me anything for another 2 years! im not paying interest.

OP posts:
Teddy7878 · 30/07/2017 12:03

How is the debt costing you nothing? Even if you're not paying any interest you're still having to put £200 or so onto the card each month to clear it. That £200 could be yours to spend on whatever you want once the card is paid off

EyeHalveASpellingChequer · 30/07/2017 12:03

If you're not paying interest then you should pay it off within the 2 years.

Original poster
user1499590110 · 30/07/2017 12:04

I mean it is not costing me anything to have borrowed it. and i bought the car with it, which was the cheapest way to do it.

OP posts:
SheRaaarghPrincessOfPower · 30/07/2017 12:06

Pay it off.! You've got the interest free period, so take full advantage of that and get the debt gone. Interest free cards may not be an option in a couple of years, interest rates may rise.

I wish I had your discipline. I'm trying to pay mine down (similar amount on interest free) but I'll definitely have some left at the end of the interest free period.

Also, once you've paid it off you'll have been used to living frugally for a while, and will have lots of disposable income which you'll then be able to save and hopefully in future you'll have built up a good amount of savings meaning you won't need to go into debt for things like cars or holidays.

TennisAtXmas · 30/07/2017 12:14

I think your friends are pretty bad with money tbh! That's quite a large debt, and all advice from every financial expert is to pay off debt. Appreciate its interest free for now, but you aren't going to suddenly have a lump sum to pay it off at the end, you need to keep paying gradually (very sensible).
I'd be surprised if there wasn't a fee for setting it up, and there's likely to be one if you get another loan when this one finishes, so it will cost you something.

And..if you keep spending all your earnings, you'll become more and more used to a lifestyle you can't fully afford...I don't mean that unkindly, but ideally you save enough to pay for cars, house repairs, holidays without needing a loan, so until you're at that point, ideally you should be paying off loan, then building some savings. Its unlikely you'll feel any more like paying it off in 2-3 years of spending that money.
Don't listen to them, you're doing it right OP!

YetAnotherUser · 30/07/2017 12:15

Pay it off!

I bought a new back door/window and new boiler, so I had about £3.5k of debt on 0% credit cards. It was a bit of a struggle but I paid them off as quickly as I reasonably could and got it all over with before the 0% deals ended.

Now life is much better and I save about £500 a month for other home improvements that need doing, which is quite a lot for my wages. Pay off the debt.

BasedOnTrueEvents · 30/07/2017 12:18

Having a £6,500 debt would stress me the fuck out. You should be aiming to pay it off as quickly as you can not putting more debt on the CC. Your friends don't sound as if they are very good with money.

viques · 30/07/2017 12:20

Pay it off. Then the money you are currently using to pay off your debt becomes yours to do whatever you want with. How many of your rack up a debt friends have a spare 200 a month that is free of obligation! not many I bet.

Timefortea99 · 30/07/2017 12:20

Pay off your debt. The feeling of freedom when you are debt free is better than any feeling that a holiday can give you.

nomad5 · 30/07/2017 12:20

Pay it off!! Absolutely!

I think you need some friends who have more financial sense!

CuntWagon · 30/07/2017 12:23

How much do you pay toward the debt? 6500^24 months is £270 per month which would see it paid off in the interest free period you've mentioned which seems fine. If you're paying more than that could drop it down?
I wouldn't rely on being able to easily get a new 0% deal. I've just tried to get one to transfer a balance but despite having good credit history I'm being rejected as I moved house a few months ago; frustrating as I'm the sole occupier so obviously have council tax etc. registered but computer says no!

Original poster
user1499590110 · 30/07/2017 12:26

I just save as much as I can each month then transfer that to pay it off. so it is usually more than the minimum i could pay it off in the overall time of interest free. i also worry about not obtaining another interest free deal - that's the concern really. im thinking about just trying to get another one now so that it is done and extended by hopefully another few months which would take the pressure off a bit.

OP posts:
tribpot · 30/07/2017 12:28

I think you need some friends who have more financial sense!

I agree. The attitude seems to be: well, debt is inevitable so it's about how you handle it. Yours is 'handled' because it isn't costing you anything so why worry about it? At the end of the interest free period you just move it somewhere else? Are you the only one of your friends who actually understands that a debt means you have to pay the money back?!

I would be very unhappy with that level of debt, and I earn a great deal more than you do. This is a great opportunity for you to think about what 'live better' actually looks like. Financial security literally does have a value greater than money, it is freedom.

Sounds like you're well on your way to clearing the debt down. You're also sensible to be saving separately since the debt is interest free. If nothing else you will be able to use that lump sum to pay down the debt if you need to, but more importantly that's your emergency fund to stop you ending up in debt again.

Swipe left for the next trending thread