What would you do with debts?

A question about : What would you do with debts?

Hi All, I hope this is in the correct place.

We currently have Ј9,000 on a 0% credit card until November this year and we are saving (which we will achieve) to clear this in full at this time. However, I have just be accepted for a Barclays Platinum CC with a Ј14,900 credit limit and the 35 month 0% BT rate.

So what I want to know is which is best?

Option 1) should I pay off the balance and forget about the 0% BT rate? Then start replenishing our savings

Option 2) Transfer the balance and keep the cash in the bank (we have TSB accounts and Santander 123 account) to get a good rate of interest for the 35 months?

Option 3) Something different I haven't thought of.

Thanks in advance and sorry if this is asked all the time

Best answers:

• There will be a Balance Transfer Fee, I imagine, so you need to work out if the transfer will cost more than the interest on the savings account is giving you.
• Thanks S, the fee is 2.49% of the balance transfer but this is for 30 months 0% so only works out about 1% charge, compared to 3-5% return (before tax) so would be worth it from that perspective.
  Just feels a bit too good to be true and whether there is a catch
• In that situation then, I'd do the BT, set up a DD for the Ј300 monthly, put the cards in the freezer and watch the CC balance drop nicely over the months.
  Then you can look at your savings knowing full well that if circumstances change drastically for the worse, you have the funds to clear the debt.
  So best not dip into the savings and also avoid any spending on the cards.