Another maths question

Discussion in 'Off-Topic Discussion' started by clueless1, Nov 3, 2014.

  1. Scrungee

    Scrungee Well known for it

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    Don't put any new purchases on it (might be what PeterS means) without reading all the conditions as all sorts of stuff can apply like having to pay off the entire interest free amount before anything is paid off new expenditure which will start attracting fresh interest. Use it as an opportunity to make a start in completely ridding yourself of the debt. When the interest free period expires, check out transferring your reduced balance to another interest free cc.

    Even when you can pay off the entire cc bill at the end of each month you're still not technically solvent unless you've got the cash to pay the next month's bills, and are instead choosing to pay by cc to get either cashback on cc expenditure or get interest on that cash you could be using to pay bills. There is another advantage which is to build up a credit rating by being responsible with a credit card rather than always paying with cash.

    Don't use any of them - cut them all up! (after getting that 0% transfer). If you're up to the limit with one, don't start racking it up on another.
     
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      Last edited: Nov 6, 2014
    • shiney

      shiney President, Grumpy Old Men's Club Staff Member

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      From an economic point of view it's only good to use a credit card if you pay in full at the end of the month. If you do that then it's best to get a card that gives cashback. The interest rate is unimportant if you pay in full each month.

      If you can't pay in full each month then, if you must have a card, pick one of the low interest rate ones. Which? magazine publish, each month, the best card for each particular purpose.
       
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