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debt os $2500, how to transfer to no interest card

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    debt os $2500, how to transfer to no interest card

    Hello,

    I have a credit card with a maxed out limit of $2500 and all I am paying is interest on it since I cannot afford to pay it because I went back to school.

    I was hoping some body can direct me since I heard I can transfer the balance to a low interest card or no interest I have had this debt for 3 years now and I live in Canada.

    any help is appreciated

    #2
    0% interest rate credit cards are very limited in Canada. TD Bank's MBNA allow no fee transfers on near perfect credit BUT only for 10 months. $2,500. debt would require payments of $250. every month, without fail to qualify. If you miss a payment, late one day with a payment, fail to pay to zero balance within the 10 month window, MBNA starts charging higher than normal interest rates and possibly penalties. You need to see a TD loans officer to fully understand the charges.

    Do you have any other options? Can you qualify for a Line of Credit since rates are low just now. We've all been warned repeatedly to bring down debt as interest rates are artificially low and are expected to escalate. This will cause credit card rates to go up even more. Can you sell items you don't use, earn extra income with a part time job, reduce living expenses, bring in roommates, deliver pizzas, walk dogs, cut lawns, wait tables mostly for tips or???

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      #3
      There are a lot of 0% interest card offers in the US, but very few in Canada. As snafu mentioned, I believe the MBNA card that offers 10 months 0% interest is the best available right now.

      Have you considered looking into P2P lending as an option as well?
      Rock climber, ultrarunner, and credit expert at Creditnet.com

      Comment


        #4
        Originally posted by draxz1289 View Post
        Hello,

        I have a credit card with a maxed out limit of $2500 and all I am paying is interest on it since I cannot afford to pay it because I went back to school.

        I was hoping some body can direct me since I heard I can transfer the balance to a low interest card or no interest I have had this debt for 3 years now and I live in Canada.

        any help is appreciated
        Doing that won't fix your problem. It will get rid of the interest, but it won't fix the bigger problem. How did you end up maxing out the card? What did you buy? Even if you are in school you can still work. When I was in college there were tons of jobs available to the studends on campus. There was also a shopping center a few miles away where many of the studends would work part time. Maybe you should look into getting a job. Then, start to think more carefully about buying things that you can't afford.

        But, to your original question, you may not qualify for a 0% interest card. You have no income and probably a limited credit history. There is also the issue of balance transfer fees that can eat up any savings that you may have gained. It would probably be easier to just find a part time job and pay off this debt.
        Brian

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          #5
          If you own anything.... sell it and pay off your debt. DO NOT charge up anything else. CCs are not a source of money, they are a tool to spend the money you already have... People just do not get that.

          Sell stuff, take on a job, skip a semester of school and pay off your debt.

          Ray

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