I think capital one has cottoned on to my plan to eradicate my debt, because they've only gone an increased my credit limit by £1000. So my account now stands at £3000.
I imagine they'll be wondering 'what's gotten into her? She's spending on her card and paying it back in full, and she's making overpayments at 6am in the morning like a crazy woman'.
Increasing my credit limit is probably them trying to lure me back into my deceased spending habits. In the past, when they've increased my limit, I'd have spent the whole lot in my head by now but this time round I'm planning on calling them to ask for it to be reduced.
Quite frankly, I'm not interested in any money that doesn't belong to me.
Credit card debt is expensive debt, so the sooner you can clear it the better. It's such a pain when you pay an amount towards your credit card and because of those dreadful interest rates, a proportion of your hard earned cash goes back into the companies pockets, which slows down the rate in which you clear your debt. Grrr!
0% Balance Transfer Credit Cards
There are many on the market and these cards are a cheaper alternative. I decided to do a pre application check to find out the likelihood of being accepted for a Barclaycard and the results came back as a 'very good chance'. As I've forecast that it will take another two months to clear my credit card, it will save me over £90 in interest by transferring my balance to a 0% interest card. However, some do charge a fee for transferring your balance over so do check this out beforehand if you decide to do this.
Do you get frustrated by the interest you pay on your credit card debt? Or have you recently finished paying off any debt? How did it feel to make that last payment? I'm really looking forward to that moment...
Labels: Budgeting, Self control