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Author: joelcorley Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308368  
Subject: Re: Risky Business: time for a BT? Date: 11/7/2006 2:25 PM
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bethdig,

You wrote, The original plan was to pay off the highest-limit CC and BT the student loan to it (this would happen in approximately six months). However, another option has come into view. An empty CC with a $10K limit has finally thrown us a decent BT offer of 5.99% APR fixed for life of balance, with a $65 transfer fee. We also have a BT offer of 4.99% fixed for life of balance with a $75 transfer fee on the highest-limit card, which currently has about $17K of available credit.

...

My feeling now that I've written all this out is that this would be the way to go, but I'm open to other's opinions as to what to do next.


Have you considered using the $10K BT to move everything off of the Yahoo (Chase) credit card? Yes, I know you don't quite have enough free credit on that account, but perhaps they'd up your credit line in exchange for the transfer? Right now your average weighted interest rate on that card is at 5.22%APR and rising.

If you could transfer the balance off of the Yahoo card and wait for the bill to cycle, you could turn around and transfer all of the remainder of your credit card debt (and even some of your private student loan debt) to this card. If the 5.9%APR for life offer is still good at that point, you could use it to transfer another $10K of that 11.5%APR student loan debt. (Actually if you're going to do that, you can simply leave the $10+K on that 5.9% card and then max out the Yahoo card at 4.9% with the rest.)

You need to run the numbers and make sure it's worth the cost of all the transfer fees. You also might want to check if you have to pay separate transfer fees for each account or if you get one transfer fee if you call and do it all at once. Anyway, my gut says that consolidating everything at the lowest available rate(s) is probably the right way to go.

- Joel
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