If you have a 7.99% credit card with a balance that your are trying to payoff, would it make sense to apply for a 0% apr for 18 months? After 18 months the APR would be more than I am paying now, 11% or more, if I’m unable to make the payoff within 18 months. Should I just keep what I have and to pay it off at 7.99%
There are plenty of factors to consider here. Does the 0% card have a fee for transfer? If they charge a 3% fee to transfer, your difference is 4.99%. Is they charge a 5% transfer fee, your difference is 2.99%. Are you going to be able to pay off the balance? If not, can they make the interest retroactive? If so, then you are paying interest on the original balance from the time of the transfer, which actually makes your situation worse.
I personally think that it may be more aggravation than it’s worth to apply for more credit and do a transfer. I’d hit the current card with extra payments to make it go away.
There are no fees to transfer but I was thinking as you said. If I can’t pay within the months given for the transfer I haven’t helped myself. I am trying to pay less interest so I can add more to the monthly payment. As it stands now the payment is a little high, kinda hard to add additional money. Thanks for your reply, appreciated
A few years back we were in a similar situation as Frances-only it was a loan, there was a transfer fee from the credit card where we’d be borrowing the $, can’t remember what it was. It was a temporary fix which worked out well with the effort to get rid of the loan and pay off the cc. There was no juggling of numbers to try to work the system in case the worse happened and the payoff was out of sight which is easy to do in your mind, but in actuality is a hot mess to remember. Feet to the fire time!