Author Topic: Should I balance transfer? If so, when?  (Read 721 times)

malloryjax

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Should I balance transfer? If so, when?
« on: December 11, 2017, 11:22:25 AM »
Hi all. I'm a new mustachian. Thanks for being patient with me as I am still trying to figure everything out. I realize this question may be repetitive and "newb" like.

I currently have two credit cards.

1. Chase with a $9,542.91 balance and 20.99% interest rate.
I can currently afford to pay $343.46 per month to this account but am paying more when possible.
2. AMEX every day with a $11,957.46 and 0% interest until 1/11/18 when it will change to 20.99%.
I can currently afford to pay $298.94 per month to this account.

I am considering transferring one of these cards to a 0% introductory card. The Chase Slate Card - 0% intro APR for 15 months on purchases and balance transfers from account opening. After that, 15.99%24.74% variable APR. - if I am accepted.

Advice? Any literature or calculators you can point me too?

Thanks in advance.


ixtap

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Re: Should I balance transfer? If so, when?
« Reply #1 on: December 11, 2017, 11:41:14 AM »
What is the balance transfer fee?

What are you doing to avoid running up more cc debt? Have you made significant lifestyle changes? Have you stopped using these cards, as payments usually go to the oldest debt, then your new charges start accruing interest immediately?

Have you talked to a non profit credit counseling about consolidation?


malloryjax

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Re: Should I balance transfer? If so, when?
« Reply #2 on: December 11, 2017, 11:45:56 AM »
The balance transfer fee is 5%.

I've cut up my AMEX card and am not using it anymore. I also just started using YNAB to budget my income and have budgeted in the payments for these cards.

I haven't talked to a non-profit credit counseling about consolidation? I have considered it but am afraid it will ruin my credit score. Do you have any recommendations for these? I believe a friend recommended National Debt Relief

Thanks for the help!



frugaliknowit

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Re: Should I balance transfer? If so, when?
« Reply #3 on: December 11, 2017, 01:57:12 PM »
Before you do a balance transfer for a 5% fee, you need a plan to get out of debt.  At your current rate of $640 per month, you are going to be digging out for a very long time.

It sounds like you need to do a budget first, then find a way to free up more money to pay this off within 15 months, THEN consider doing a balance transfer.  I hope that helps.