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Author: OtherVoices Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308406  
Subject: Re: Making a commitment Date: 7/8/2007 6:20 PM
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Best of luck in paying down your debt, Loving. I hope that posting your progress gives you incentive to stay on track.

"BT" stands for "Balance Transfer".

What AJ (I think that's who you meant to refer to) was proposing was balance transferring to yourself rather than directly from the Dobbs card (which is apparently not allowed by Citi). Sometimes credit card companies will allow you to take advantage of a balance transfer offer by depositing the funds directly to your bank account, and then you can pay off whoever you like. It's often a good way to pay off a "related party card" or a store card. You do have to be careful, though. Some companies are picky about the "checks" they send you. For example, they may treat a check written out to yourself as a balance transfer (and a lower rate), but the very same check written out to "cash" might be considered a cash advance and charged higher rates. It's probably best to call and talk to a customer service rep and find out your options.

You do want to be careful transferring balances around. If you take advantage of an offer on a card that is already carrying a balance at a nosebleed rate, be aware that any payments you make towards that card are going to go towards the lower interest rate balance first. This means that balances sitting at higher rates will remain untouched and continue to accrue interest.

You should also make sure that you're factoring in balance transfer fees. Although some of your rates are high, it may not be worth transferring them to another card if it's going to cost you a hefty balance transfer fee. If you're not sure how to figure out the cost-benefit, go ahead and post here and I'm sure one of the math-whizzes will figure it out for you.

Again, good luck to you.
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