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Author: dbrudos One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308881  
Subject: Discover semi-success Date: 8/13/2003 12:35 AM
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Well, I got into some trouble(basically was DW spending and me saying 'I'll take care of it') and managed to defer(stick it on various 0% until x) over $16K in debt.

I've since refinanced the house(HUGE cashflow +), had a heart-to-heart with DW and now we're back on the repayment train.

Long story short--I refinanced some soon to be non 0% debt with about $9K on a Discover plan that gave me 2.90% for the life of the balance, as long as after 6 months I made at least one purchase every month(no minimum). So here's the deal:

The rep at Discover who talked me into this 2.9 for life bal. xfer said that even though the lowest balance gets paid first, that I could simply call up another rep(six months later) and ask for the 0.0% for six months purchases rate that they were offering en masse at the time. The payment then goes toward the purchase first. Perfect! To good to be true...so then I asked 'What if the six month period runs out?' Simple(he says), just call up and ask for it again!

Sounded good to me, and since even if he was talking out his ass, there was no minimum, so I could buy a pack of Juicy Fruit for a quarter once a month. No huge harm no foul. So this month is the period that I'll need to make a purchase...and I make the call. Sure enough, 0.0% on purchases is not available.

But 3.9% for six months is. Woo hoo!...sort of. I'll still be paying the gum interest first. But at least the interest on that pack of gum will be less(than the 10.74% I would have paid if I didn't make the call)...assuming I'm not stuck with that $.50 minimum finance charge you always see on the back of the credit card offers. But I guess the 50 cents(if they charge it) wouldn't have mattered either way, since the average daily balance is so low.

If you're thinking snowball(for the rest of my debt), I just refinanced some 5.99%(for life...better keep that good cashflow going!) to a Citi Div Plat MC that is 0% until Aug 2004. The only other real debt is a 5.75 from Peoplefirst errrr....Capital One loan on a Honda CRV we bought right after the baby was born(needed the room during transport and it has served us well), so that's where the snowball is going.

Anyway, wanted to let you know that Discover balance for life w/ purchase option you can call and ask for your purchase balance to be lowered--albeit for a limited time.

Of course, after six months, you can call and ask for it again.

Darren
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