Author Topic: Critique my cc debt payoff strategy  (Read 1625 times)

DSKla

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Critique my cc debt payoff strategy
« on: December 21, 2014, 02:19:16 PM »
CC debt: $6000
APR: 10.99%

I am considering applying for a Chase Slate and doing a 0% balance transfer with 0% APR for 15 months, and paying every dollar that's left over after monthly expenses, which I'm working to reduce. Even before reductions, I was killing off ~$400/month when not encountering unforseen expenses like vehicle repairs. Mint says my credit score is 704. This is my one and only credit card, and my only debt of any kind.

Any reason not to go for the Slate? Other strategies to offer?

Current card has no annual fee. If I do transfer, should I just leave the current one open and never use it, or cancel it?

Cassie

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Re: Critique my cc debt payoff strategy
« Reply #1 on: December 21, 2014, 02:35:03 PM »
Is there a fee to transfer it-usually a percentage of the amount you borrow?  Is there an annual fee?  If the answer is yes to these questions then look at how much you are paying in interest on your present card versus what these other fees would cost.  Do the thing that will cost you the least amount of $.  I would only keep the first card if you have the determination not to use it.  If not you will just run that balance up again & be in worse shape.

DSKla

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Re: Critique my cc debt payoff strategy
« Reply #2 on: December 21, 2014, 02:39:54 PM »
No transfer fee or annual fee. APR would kick in after 15 months. I was hoping to have it done by then.

seattlecyclone

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Re: Critique my cc debt payoff strategy
« Reply #3 on: December 21, 2014, 03:32:35 PM »
I say go for it. You'll quit paying interest for the next 15 months, which can help you save several hundred dollars. To pay off $6,000 in 15 months, you'll need to pay $400 every month on average, not just months in which nothing "unexpected" happens. I advise you to find ways to cut your budget a bit more so that unexpected expenses don't throw you off track for getting your debt paid off.

As to your current card, leaving the account open can help your credit score. Having more total credit available and an older existing account will both work in your favor. That said, don't use the higher combined credit limit as an excuse to charge more. You've realized how bad credit card debt can be, so don't fall into that trap again.

Bob W

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Re: Critique my cc debt payoff strategy
« Reply #4 on: December 21, 2014, 03:36:47 PM »
Yes, but pay it off in 5 months.  This is the badass money advice forum after all.