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

[user1499590110]

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...

You haven't frivolously spent on your card.
You've got a good deal for a car loan. I bet there are loads of MN and maybe some on this post who are chirping about cc debt and they have loans for a car. A car is a valid reason for a loan!
Replacing a boiler is a valid reason as well. Not everyone has a wad of cash to pull out in an emergency.
It's not like you've had a heck of an afternoon in the Trafford Centre!

Pay it off asap!
I buried my head in the sand with debt for years and now it's come back to bite me on the ass.

You've got your own home and a car and are managing to afford the payments, I'd say you are doing pretty well for yourself even if you have had to lend some of that money.
Pay it all off and then you can go off and enjoy yourself in a year or two - once it's paid off you'll have credit available for anything else that comes up

Pay it off and continue to use credit cards to your advantage. Playing the 0% game isn't always easy. I currently have four cards on 0% offers but now have the worry of whether I will get future good deals after recently moving house. Stick to your life plan not your friends!

2 years is a long time to have the debt hanging around and you are hoping to transfer the debt.
It's not particularly long for a car loan though.

Even if the OP could pay off half the balance as quickly as possible before paying for things like holidays etc she'd be in a much better position

Pay it off and look forward to the fact that youl have more disposable income to look forward to . I know it feels a bit boring now but some people don't have the knowledge that it's only for a couple of years were as you know your finances will improve for the better in a relatively short time frame

£270pcm would only pay off the card, you still wouldn't have any savings.

Personally I like a nice sum for the oh fuck expenses, like a new car or house repairs. If you don't have that then something will come up and you will be reliant on a loan or the credit card again. Plus who knows what the future holds.

As for over paying on the mortgage, I highly recommend it. That was the start of allowing us to release equity and build our buy to let portfolio so we are mortgage free on our home and lots of equity in the buy to lets. It was well worth us investing rather than spending.

Your friends are idiots. Pay it off.

I'd carry on overpaying, you can change your mind at any time and spend on the credit card if you fancy a holiday or other spending

It sounds like you have organised yourself really well. You are on your way to paying off and interest free loan for a car. There is no sensible reason for slowing down the repayment- I think your friends are foolish. Think how much richer you will feel when you have finished paying it off. Look forward to enjoying it then, don't waste it now!

Love51 with interest rates so low, it's financially better to invest the money rather than overpaying the mortgage. Your mortgage is the cheapest loan you will get. It's about thinking long term, the mortgage will get paid off anyway so it's more financially sound to make other investments with the money you save. But I understand that psychologically a mortgage can be a mental burden, which is why people do like to overpay.

Obviously the ideal situation would have been to have thousands of pounds to spend upfront. If you had a few thousand in the bank it definitely wouldn't be ideal to spend it all on a car upfront! Much better to keep the money as an emergency fund or invest, and pay for the car with an interest-free loan, as you are doing. I don't know why you are worried about there not being 0% interest deals in the future, they have been around for years and years and will always be available if you have a good credit score... something you are contributing to by using your credit card.

I would pay it off. Then when it's done, you will have got into the habit of not having access to £200 or so of your salary so that next time a big expense comes in (like the boiler), you will have enough in savings to pay for it.

You should aim to have six months salary saved up if you can. The way your friends are advising you to live is how people end up getting their houses repossessed if they lose their job.

wigan thanks