Change of Plan!

I have taken out a new credit card!!! Possibly something you were not expecting to hear from somebody who is doing everything they can to pay off debt… But, there is method to my madness…⠀

I’ve talked about this before, but my consumer debt is made up of three things – credit card, personal loan and car loan. I have been working to pay off those 3, with the highest interest debt being attacked first. Up until this week, the highest interest was on my Credit Card – so it’s been normal payments for the Personal Loan and Car Loan, and extra cash being thrown at the Credit Card. ⠀

However, when I realised that I had the chance to cut my credit card interest to 0%, I made sure I did what I could to secure that. So I switched to a Credit Card that gave me 0% on the Balance Transfer amount for 6 months. 6 months interest on my previous card would add up to approximately €350, so this is a nice win! I don’t actually use the credit facility any longer, purely paying off what’s owed – so I am planning on paying this off before the 6 months is over.⠀

So as the Credit Card is no longer costing me the most in interest, I’ve decided to start attacking the next highest, which is the Personal Loan. If I pay this off earlier than scheduled, I could be looking at a saving of approximately €550. ⠀

I’ve made 2 small changes to my debt pay-off plan, and will save €900 – even more, depending on how quick I can get the 2 loans paid off. It’s all about making your money work harder for you, even when it comes to paying off debt. If you’re in a similar situation, see if a 0% Balance Transfer would work for you. Two VERY important things to note – you have to promise yourself that you will close the old credit card account and also not increase the amount owed on the new one. ⠀

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