Skip to main content
No. of Recommendations: 7
0% for 14 months on BT's

You need to carefully read the terms, and understand when interest will start being charged. If your rate expires May, 2021, does that mean that interest actually starts being charged on the balance in April, since the expiration is for the cycle that has a payment due in May? Or does it mean that interest will start being charged after the cycle that closes in May? Both scenarios are possible, so you need to be sure you understand which one it is.

13.49-17.49% thereafter

Yeah, you need to assume that it's probably the 17.49%, rather than the 13.49% - which means if you don't get the balance paid off by the time the promo period ends, you're going to be paying a higher rate, or you will end up paying a BT fee, effectively paying more than the 0% rate you are seeking.

I would expect my side hustle to zero out the $6239 balance in the next 6-7 weeks, weather permitting.

See, that's the thing - what if the weather doesn't permit? You are engaging in magical thinking when you are counting on things like the weather to go right.

Without seeing info on how the minimum payment would be calculated, it would work for us even if it more than doubled.

But if it more than doubled, would that still allow you to make more than the minimum payments on your higher rate debts? You need to be sure you understand this before you even apply for the card. Many credit cards have minimum payment requirements of (prior month interest + prior month fees + 1% of the principal balance) Assuming you don't incur any fees, on your 13.49% balances, that's going to be a little over 2% - about 2.1% If your minimum payment was instead, 5% of the original balance (i.e. more than double), and stayed at that level, would you still be able to do a snowball on the rest of your debt?

Is this devil worth dancing with?

Maybe. Since the lowest possible rate on the new card is the same as the rate on the debt you have suggested you will transfer, you must be:
- Totally confident that the newly freed up credit line(s) will not tempt you to use them
- Totally confident that you will be able to pay the entire balance transferred off before the promo rate expires
- Totally confident that you will be able to afford the new minimum payments on everything and still have money to put toward paying the higher rate debt back.

If you really want to spend the least amount on interest, I would actually suggest that you should transfer the 16.49% debt, and part of the 13.49% debt, but no more than you will be able to pay off in the promo period, while still making more than the minimum payments on your high rate debt.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.