Credit Card balance Transfers

**disneysteve** · 06-15-2010, 08:05 AM

Check on the fee for using that check. It is usually 3% so for $5,000, it would be $150. If the check still gets you 0% for 18 months, it would still work to your advantage as you'll save more in interest than $150.

**coach2wealth** · 06-15-2010, 08:42 AM

I understand your desire to reduce your interest rate. 0% for 18 months sounds good. I encourage you go for 0% forever. Assuming 7K is your total unsecured consumer debt, get on a hardcore budget and produce a few bucks on the side and kill this debt permanently. As long as you are paying interest you will not build wealth.

I've been there. Others helped me get with the plan, and turn my financial world around. It's hard work, but it is worth it!

**disneysteve** · 06-15-2010, 08:50 AM

Originally posted by coach2wealth View Post

I understand your desire to reduce your interest rate. 0% for 18 months sounds good. I encourage you go for 0% forever. Assuming 7K is your total unsecured consumer debt, get on a hardcore budget and produce a few bucks on the side and kill this debt permanently.

Very true. I always say that you can not borrow your way out of debt. Shuffling it around to lower the interest rate can help pay it off quicker but ultimately, you need to tighten your belt and cut your spending to get debt free and stay that way.

**wizard210** · 06-15-2010, 09:40 AM

Originally posted by disneysteve View Post

Very true. I always say that you can not borrow your way out of debt. Shuffling it around to lower the interest rate can help pay it off quicker but ultimately, you need to tighten your belt and cut your spending to get debt free and stay that way.

So very true.

I have 3 other CC's that I carry balances on. I got myself into this mess due to online poker

I know I know. I'm working on kicking that little problem as well. I can truthfully say that I stopped playing 4+ months ago and haven't touched it since.

I'm following the advice of Dave Ramesey and doing his baby steps.

I now have a EF of more than 1000. Plus I've been able to pay off 3 debts of Home depot, JCP, Peebles. I've also been able to put 1200+ towards paying off my target credit card.

hard work, determination.

I WANT TO BE DEBTFREE!!!!!!!!!!!!!!!

**disneysteve** · 06-15-2010, 09:44 AM

Good for you! I don't agree with everything that Dave Ramsey teaches, but overall, his program is a very good one and if you follow it, you will be debt-free before you know it. It is great that you stopped what was causing the problem and already have your baby EF and 3 debts paid off. Keep us posted on your progress.

**JoshuaHeckathorn** · 06-15-2010, 09:58 AM

Nice work! It's always great to see someone makes the necessary changes to get back on the right path.

Regarding the balance transfer, I would personally steer clear of the check from Citi. Credit card checks are usually treated as cash advances, which you really don't want to mess with.

Besides, there are plenty of other no annual fee credit cards out there offering 0% balance transfers. Discover is one of them. The fee will likely always be 3%, but as Steve said, you'll still come out ahead as long as you stick to your guns and pay it off as fast as possible within the promo period.

**disneysteve** · 06-15-2010, 10:05 AM

Originally posted by JoshuaHeckathorn View Post

Credit card checks are usually treated as cash advances

That's true, but if the interest rate is 0%, that wouldn't matter.

**wizard210** · 06-15-2010, 10:13 AM

From what the customer rep told me the check is basically the same thing as the card. For example purposes I receive a check of $5000 that has 0% apr for 18 months.

**disneysteve** · 06-15-2010, 10:24 AM

Originally posted by wizard210 View Post

From what the customer rep told me the check is basically the same thing as the card. For example purposes I receive a check of $5000 that has 0% apr for 18 months.

That's good. What Joshua was referring to is that the checks are generally treated as a cash advance, meaning interest starts accruing immediately rather than having a grace period. Since the rate is 0%, that is irrelevant in this case. Just make sure you pay off the full balance before the promo period expires.

**wizard210** · 06-15-2010, 10:31 AM

that's the problem that I have right now with this. I pretty much know I wouldn't be able to pay off the 5000 before the promo period. I would just be looking at it to help lower interest then maybe look again at transferring the remaining balance to another promo card.

bad idea I think. Just looking for help anywhre I might find it.

**disneysteve** · 06-15-2010, 10:34 AM

Originally posted by wizard210 View Post

that's the problem that I have right now with this. I pretty much know I wouldn't be able to pay off the 5000 before the promo period. I would just be looking at it to help lower interest then maybe look again at transferring the remaining balance to another promo card.

bad idea I think. Just looking for help anywhre I might find it.

It isn't necessarily a bad idea. Find out what the rate will be after the 0% expires. If it is less than you are paying now, it would still be worth it. If not, don't take the full $5,000. Just write that check for whatever amount you can afford to repay in 18 months.

**wizard210** · 06-15-2010, 10:41 AM

I would most likely be using it to help pay off a Chase card carrying a balance of 3646.28 with a rate of 19.2%

This is from Citi. I haven't sat down yet to discern everything.

CITI DISCLOSURES
Annual Percentage Rate (APR) for purchases 0.00% for 18 months from date of account opening for APR 1. After that, 9.99% variable. 0.00% for 12 months from date of account opening for APR 2. After that, 15.99% variable. 0.00% for 7 months from date of account opening for APR 3. After that, 19.99% variable. �
Other APRs Balance transfer APR: 0.00% for 18 months from date of account opening for APR 1. After that same as for purchases for APR 1.
0.00% for 12 months from date of account opening for APR 2. After that same as for purchases for APR 2.
0.00% for 7 months from date of account opening for APR 3. After that same as for purchases for APR 3.
Cash advance APR: 25.24% variable.
Default APR: 29.99% variable. See explanation below.*
Variable rate information Your APRs may vary each billing period. **
The purchase and balance transfer APR equals the Prime Rate plus 6.74% for APR 1; plus 12.74% for APR 2; or plus 16.74% for APR 3.
The cash advance APR equals the Prime Rate plus 21.99%.
All default APRs equal the greater of (1) the Prime Rate plus up to 23.99% or (2) up to 29.99%.

**ditchtheboss** · 06-18-2010, 03:55 PM

Check what the interest rate will be after the 18 months period. If it is more than your current card and you don't pay it off in the 18 months period, or signifincantly reduce it, you may end upo in a worse situation than you are now. Most importantly, if you do transfer the money, make sure you don't use the other credit card because if you do you will be much worse than you are now and the interest you will be paying will be really high.

Good luck

Credit Card balance Transfers