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In the spirit of trying to get out o debt, I've been making budgets, plans to pay of cards etc. I am very new to the whole finance thing, so I am trying to learn about the best opitions for us.
Our highes intrest card is at 29.9% intrest, and that's the one we've been working on. Balance in June was $3,244.28 with a limit of 3200, we started to actually pay it off instead of making minimum payments, in turn the limit was decreased to 2000 (reason given was that we rent not own). We currently owe $880 on that card (The remaining $11 would be paid off immedeatly).
Our second card is at 2169, limit is 3200, intrest is 16.9%. We are making minimum payments
They would allow us to transfer a balance up to 870 on this card for a 3% fee.
My original plan was to have the 1st card paid off by November, however there is a chance that we might have to move in January (husband in the air force) and we don't have any savings, yet (well we just started). Knowing that the move will cost us and to avoid having to use the cc to finance it, I now decided to make minimum payments and put the money we usually pay on the card, into savings until we know what will happen. That way if we don't move, we'll take the money to pay off debt, if we do move we hopefully won't need to add any debt to the cards.
Long story short, would it be a good idea to transfer the lower balance, higher intrest card to the higher balance, lower intrest card?
Thank you!
Our highes intrest card is at 29.9% intrest, and that's the one we've been working on. Balance in June was $3,244.28 with a limit of 3200, we started to actually pay it off instead of making minimum payments, in turn the limit was decreased to 2000 (reason given was that we rent not own). We currently owe $880 on that card (The remaining $11 would be paid off immedeatly).
Our second card is at 2169, limit is 3200, intrest is 16.9%. We are making minimum payments
They would allow us to transfer a balance up to 870 on this card for a 3% fee.
My original plan was to have the 1st card paid off by November, however there is a chance that we might have to move in January (husband in the air force) and we don't have any savings, yet (well we just started). Knowing that the move will cost us and to avoid having to use the cc to finance it, I now decided to make minimum payments and put the money we usually pay on the card, into savings until we know what will happen. That way if we don't move, we'll take the money to pay off debt, if we do move we hopefully won't need to add any debt to the cards.
Long story short, would it be a good idea to transfer the lower balance, higher intrest card to the higher balance, lower intrest card?Thank you!