But then there’s the credit card bill. It’s tugging at the corner of the duvet, reminding you that you’re paying 18% interest. Just pay me off, it’s saying, and I’ll leave you alone.
And of course it’s right, it makes no sense to pay for the 18% when you’re only making 2% on your savings. Just toughen up, it says, pay the debt, get back on terms.
What if you switched the credit card debt to a 0% balance transfer on a different card? There’ll be a transfer fee to pay, but you won’t have to pay it up front, it’ll be added to your debt. The size of the fee will vary depending on how long the 0% period lasts, so shop around for a deal with a fee you’re willing to pay and you could buy yourself a few more months under the duvet, maybe even a couple of years.
That’s better. Now, while you’re all snuggly under there, come up with a plan. Stop spending on your card for starters, it’ll just take longer to pay off, and don’t just pay off the minimum, try working out how much the payments need to be to pay off the debt before the end of the 0% period. And remember, don’t just leave the money you’re saving in your current account. Even though savings rates are low, it’s still worth seeking out the best deal for growth.
Ooww, thank you.