Is there a down side to this plan?

[asmom]

A friend of mine owes about $8000 on her car @ 5% interest. She is supposed to pay it off at the end of next year but she wants to double the payments and pay it off by the end of this year. She currently has plans to transfer the remaining balance to a 0% credit card that has no balance transfer fee. She figures to save about $900 with this plan thus paying it off 1 month earlier than if she stuck with her bank. I say go for it if it's not going to cost her anything to do it but her husband and another friend are adamant that it is a bad idea and think she should leave well enough alone. I don't understand why. What am I missing?

[Hypersion]

8000 * .05 = $400.

Good idea only if she can pay off the credit before the zero % promo ends.

[sweeps]

Yes, the down side is if she goofs and doesn't make the minimum payment each month, or she makes purchases on the card, or she isn't able to find another 0% credit card deal before the balance is paid off, her plan will backfire.

[asmom]

Yes, the down side is if she goofs and doesn't make the minimum payment each month, or she makes purchases on the card, or she isn't able to find another 0% credit card deal before the balance is paid off, her plan will backfire.

Her plan is to pay if off before the year is up. She's pretty disciplined; I have no doubt she will be able to do it. But thanks for pointing out the potential pitfalls, I think that is what her husband is worried about.

[Broken Arrow]

I think it's fine... if she is as disciplined enough to stay on top of it as you say she is.

[DebbieL]

If she does it according to her plan there is no downside. That's exactly what I would do if I were her too.