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Clearing Balance

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Little helper

Clearing Balance

Hi

This is the first time I have posted here. My question is, do I or don't I clear the balance on my Tesco Credit Card. When I got the card, it was on a promotional offer of 0% interest on balance transfers. I was hoping to have cleared the balance before this offer ended, but that wasn't to be, so now interest is being charged. Without going into to much detail, the outstanding balance is less than £3,000. I do have money in my savings to clear this balance, but it will take a big chunk of it and as im not working at the moment, those savings are not being replenished. So I'm not sure what would be the best thing to do. Carry on paying the minimum amount every month and being charged interest or use the money from my savings to clear the balance. Any help or advice would be appreciated.

2 REPLIES 2
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Safe hands

Re: Clearing Balance

Hi @RacyTracy 

As you say its a tough one to call.

If it was me I'd be asking if I cleared it can I spend on my credit card if needed as savings have been depleted? If I can then I now I have got a back up.

If I paid it and it took a big chunk out of my savings then how would I feel as its my cushion and its giving me some comfort?

An alternative is to pay some of the credit card balance which would reduce the amount of interest incurred.

I feel as you know you best then only you can weigh up the situation.

Whatever you do you will do the right thing for you.

Take care!

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In the know

Re: Clearing Balance

Good evening.

 

I agree with what @25H has said-it’s a tough one to call.

 

In your shoes I would look at perhaps look at using half of my savings towards making a repayment to the outstanding interest bearing balance because the interest earned on your savings will be far lower than the interest owing on your credit card.

 

I hope we’ve been able to help you in some way and I wish you the best in whatever you decide to do.