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Paying off Credit Cards but need to buy something

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Hi,

I was wondering if you could help. My boyfriend is trying to pay off all his credit card debt, and every month he puts nearly all of his wages into paying them off. However, he needs to get something which is going to cost in the region of £1000.

Is it better for him to only pay the minimum payments on his cards and then buy it outright, or to put it on a credit card, and like he is doing every month, use nearly all his wages to pay the credit cards off.

Sorry if this is a stupid question, but I don't really have a clue as I havent even got a credit card!

I just want to find what will be the best way for him as he is trying so hard to clear them.

Thanks a lot

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Tricky one Repeat, as it can be difficult to know what might be best without a bit more detail. It may depend on how big the credit card debt is at the moment, the specific terms and conditions on his card and what he is buying.

    One thing people are finding out quickly at the moment is that credit cards can provide you with a level of payment protection that debit cards and cash doesn't. So if you don't mind us knowing it might be helpful to let us know what it is.

    For example, right now, there's a pretty strong case for buying something like a holiday or furniture that might take time to arrive through a credit card.

    Credit card interest rates also tend to increase the longer people have cards - if you've got a card that started on a low interest rate it may be much higher now. A lot of cards take repayments off the lowest interest rate spending first and the highest last. If that's the case then using the credit card may not be the best option and he'd be better just meeting the minimum payment this month and buying the item outright.

    Another thing he might want to consider is the psychological effect of spending on the card - if he's managed to religiously make repayments how will it feel to be using the card again? It might be worth him bearing this in mind and making certain he isn't tempted to use the card for other items after spending the £1000

    You may be able to find more specific advice over on moneysaving's credit card section here -
    http://www.moneysavingexpert.com/cards/

    And good for him managing to clear his debts off as much as he has so far :)
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    It's really gonna depend on a lot of factors as jim says. Also if he's on some special rate then a lot of them do not apply to new purchases.
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