Should I transfer my CC balance?

[merlin7676]

So I've been very very aggressively paying down my debt..I want to be completely debt free...Student loans and all CC debt gone except one which is the last one I'm still working on.
Having never done a balance transfer before I was wondering it it's worth it.

debt 7K left at 13.99%.
I can transfer it to the other CC I paid off for 0% APR till Nov 2016 with a 2% charge.  I'm currently throwing $800 a month at it now. Might not seem like a lot to people here but trust me 800 is my "hair on fire" amount I can afford to do. Last statement was$ 77.25 charged in interest.

Current projection shows I will have this paid off in June or July. Is it worth it to take the 2% hit and transfer it and save the money interest charge that could be used towards the principle?

Thanks

[slugline]

This is a straightforward arithmetic question, so I tossed your numbers into an online amortization calculator.

If change nothing, your current paydown rate gets you to zero around July 2016. Your total interest charges between now and then would be $400-something. An immediate 2% now to transfer the $7000 balance would be only $140. So yes, it is to your advantage to transfer, and it gives you more flexibility in paying the principal off. Just don't abuse that flexibility and you'll be fine.

[darkelfx]

Yes, if you have the option to transfer it and have 0% APR balance transfer until 11/16, then yes by all means do it. You'll end up paying more if you're only paying $800/month down every month, especially because your interest is probably compounded daily, which will screw you over time.

Just don't get into the habit of ignoring it/making only minimum payments, because 0% is only great until it's over. Happened to me several times.

[Lis]

If you're VERY disciplined, pay the minimum and stick the rest in a savings account until the 0% is almost over. You'll make a few bucks along the way. You just have to be extremely disciplined and dedicated to paying it off. If you think there's a part of you that might falter, just switch it to the 0% and keep paying the $800 a month.

Great job! Hang in there!

[Argyle]

Why not transfer it to a credit card with no transfer fee?  The Chase Slate and the BankAmericard Cash Rewards card both have a 0% transfer fee and 0% interest for 12+ months (15 months on the BankAmericard), according to DoctorofCredit.  Maybe see if you're eligible.

[milesdividendmd]

Why not transfer it to a credit card with no transfer fee?  The Chase Slate and the BankAmericard Cash Rewards card both have a 0% transfer fee and 0% interest for 12+ months (15 months on the BankAmericard), according to DoctorofCredit.  Maybe see if you're eligible.

+1. No reason to pay transfer fee.

[Dicey]

My advice is that you take Argyle's advice and then do the transfer. If for some reason you can't qualify for a 0% transfer offer, then 2% still puts you ahead, so I vote yes.

[merlin7676]

thanks for the advise. I don't want the 0% which is a new CC though. But I will definitely look at doing the transfer.

[Rosy]

7K at 13.99 at $800 pmts is 10 months of payments and an interest of $427.24 according to my android app Payoff Calculator.
vs $140 or 2% balance transfer charge.
Nice savings opportunity:)

Still I would go with a new card at no transfer charge at all if you qualify. Why give them $140 of your money?

... and really you could also simply place the $800 each month in your own savings account, earn some interest and then pay it all off in October 2016. The beauty of that scenario is that you do have the monies at your full disposal during that time, all you have to do is pay the minimum payment to the cc each month.