I must admit, the first 3 months were the hardest I have ever gone through financially as I had never actually gone a month living on my wage, I was always sticking holidays and treats on my credit card so was never realising what it actually meant to live off the money I earnt. Not allowing myself the ‘extra’ treats each month was hard, and my initial payments on the 0% card were £100 a month – which on top of rent, gas bills, weddings, was really hard for me. But gradually, I’d only pay £74....then £70....and seeing such a big difference has been really satisfying. I have paid £2,000 off my credit card in the last 2 years and my payments are now only £50 (although whenever I have spare cash, I pay off more).
And now, if we can’t afford something, we wait until payday, simple as that. And once my card is fully paid off, all my wage will be mine to play with.
The first step is making sure you have a 0% interest card (and NOT using it to buy anything!). Why spend half your money paying someone else? You pay more off your bill, but it all goes towards your debt. These cards do, however, charge something like a 2% fee for transferring a balance. And the 0% interest usually only lasts for 1 year or 18 months, so make sure you’re aware of all this.
I have used Capital One, then switched to Natwest and now using Virgin. All of these have been great – so make THIS your new resolution.
Uswitch.com has a comprehensive list of the best 0% credit cards, highlighting HSBC Visa as the best with 23 months interest free (however, also the highest transfer fee). Good luck!