Your plans should, in my view, involve paying off the debt when the promotion ends. There is not a limitless supply of 0% deals to transfer debts to every year or so. Just a few months on the "normal" credit card interest rate would wipe out any interest from savings and, when it costs 3% to make the transfer, it is often a marginal decision whether, should a promotion become available, it would be better or not.

If you had £5k in a savings account and £5k debt on credit cards, I would say that your savings were zero. If you have no debt on your credit cards and you needed funds, then that would be the time to borrow in my opinion.

I need some help please!!

I have savings of almost £1500 and an outstanding debt on a credit card of £5500 which is currently on a 0% interest deal and this runs for another 13 months. I am currently paying the minimum payment of 1% a month. In January my financial situation will change in so much that i will be able to either save £300 a month or pay this off my outstanding debt.

Is it better to save the £300 and earn interest on this and pay it off at the end of the next year (when the 0% interest ends) leaving me no savings but being debt free or is it better to save the money and at the end of next year transfer the balance again to a 0% interest card and look to pay the debt off then and keep a lump sum in the bank.

I have been raised to believe it is better to pay off debts even if this leaves no options of savings although i am not comfortable with this. I have recently bought an oldish property which i rent out which may need new central heating and a roof in the next few years. I don't want to be in the situation of being debt free but then having to borrow again at a later date to make home improvements.

Any advice would be helpful..