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No Balance Transfers For You!

November 1st, 2012 at 12:31 pm

I have 2 high interest CCs. Really, at this point, I have one. CC1 is at 8.9%. CC3 is at 0.0% at the moment, and set to jump up to 23.99% at the end of December. So, that's why I say 2. One is high now, and the other will be high soon.

I'm at the point that if I transferred the balances of both CCs to a new 0.0 card, that the 3 or 4% balance transfer fee would be about a wash. The cost of the balance transfer would be about the same as I project we would spend on interest. So, we'll tough it out, and pay the balances as soon as is reasonable.

We are in a bit of a cash flow crunch this month. We paid property taxes and paid for new license tags and new driver's licenses today (we both have November birthdays). And, I'm expecting to fill the heating fuel tank this month or early next month. So, the payoff of CC3 might not happen before the end of the year. We should have it paid off by January, or February at the latest. But, it looks as if I'll be paying that ridiculous interest rate on some of the balance. Then, we can concentrate on CC1.

Posted in Personal Finance, Credit Card Debt | 3 Comments »

3 Responses to “No Balance Transfers For You!”

  1. creditcardfree Says:
    November 1st, 2012 at 02:19 pm 1351779570
    1351779570

    It's good to do the math anytime you consider a balance transfer. You have made great progress this year!

  2. Looking Forward Says:
    November 1st, 2012 at 07:03 pm 1351796639
    1351796639

    What I have done to "transfer" a balance to a 0% card is to use the 0% card to pay for everyday expenses (sounds like right now you have a lot of those!) then I take the cash that would have been used to pay those bills and I apply it to the high interest card. Does that make sense?
    It is not as direct as just telling the CC to do a balance transfer, but this way you don't pay anything to "move" the balance to the new card.

  3. Jerry Says:
    November 4th, 2012 at 10:27 pm 1352068072
    1352068072

    Paying for the annual (or recurring) auto expenses can lead to a huge hit all at once, that is for sure. That's not even considering the current costs of fuel and insurance. You are doing a great job, so don't let the little delay get you down!
    Jerry

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