Should I transfer all of my debt to one low interest card?
May 8th, 2009 | by admin |Greek Wife <3 asked:
I have credit cards at best buy, walmart, american eagle, and SEVERAL other places.
My debt is a total of 4,500 dollars.
My new credit card has a 7k limit and 0% interest for the first six months and after that its only 5%.
To me it sounds like a good idea becuase im avoiding the 22%-30% rate on my other cards.
one of my cards has a 29% interest rate and its KILLING me.
So would this be a wise decsion?
Also if I did put all 4,500 dollars on there. How much would my average minimum payments be?
my interest rate is 0% for 6 months then 5% fixed
MAJORIE
7 Responses to “Should I transfer all of my debt to one low interest card?”
By Brenda J on May 8, 2009 | Reply
You need to cut up all your credit cards, go to a credit union, open an account and see if you can get a loan to pay off those balances and start fresh. It will take you YEARS to pay off this amount when using credit cards.
Stick by the old adage: If you can’t afford it, don’t buy it.
I know we all have times when stuff comes up–have an emergency credit card that has a very low credit limit on it.
By david g on May 9, 2009 | Reply
Plan on getting rid of all your credit cards.
By Tim D on May 10, 2009 | Reply
That is a good idea, I can’t give you a monthly payment, but there are calculators on the internet that can tell you. Just be careful not to get into more debt because you have extra money at the end of the month. Take that extra money and save it or make double or triple payments on your new credit card. And then cut your credit cards up! Good Luck!
By jkyongi on May 11, 2009 | Reply
Of course you should go for lower interest. Forget about minimum payments. Live in a cardboard box and eat rice, but pay the doggone thing off. Cut all your credit cards up with scissors and start paying cash. Get rid of your car payment too. Drive an old car or walk, but paying interest is just giving money away.
When you see people who have nice things you envy, just think about how much debt they’re in.
By cream1112001 on May 14, 2009 | Reply
Anything is better than what you’re paying now. Here’s the thing
1. Check to see if the rate is 5% fixed or adj after 6 months on balance transfers.
2. While you have a balance never ever use this card for purchases and or cash advance because payment always goes to the lowest apr.
By Paula M on May 15, 2009 | Reply
Only if you have REALLY LEARNED your lesson…..never ever carry a balance again……ever…..unless the car blows up on the highway!!!
The thing is….if you were really serious….list your credit card balances smallest to largest…..focus every extra cent on the littlest balance and pay minimums on the others…..Once you pay OFF that first balance you might stay motivated to attack the next one….
Very Important: The three credit cards you listed….are considered bottom-feeder credit…and that actually reflects BADLY on your FICO score…
$4,500 is very little compared to most…..give up Christmas this year….clean the neighbors garages for $25 a pop…..work at McDonald’s…lose the cable…cut your cell phone package….
And by Memorial Day 2009 You are back in control….
and don’t ever use those particular cards AGAIN!!!!
By Dale H on May 18, 2009 | Reply
Sounds like a good idea, but I would make more than the minimum payments to pay the balance down under 50% of the limit as soon as you can.
Average minimum payments might be from 2-4% of the balance.
Even at 5% APR, if you paid 197/month your balances would be paid off in 2 years. However, at 5%, that is cheap money for unsecured debt. I have a similar balance at 2.99% until it is paid off and the minimum payments are 68/month. I don’t care if I never pay it off. I will make the minimum payments on that account and focus on paying off other debt and savings to avoid debt in the future.
Good luck.