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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: It's time. Date:  1/23/2019  1:16 PM
Author:  aj485 Number:  312390 of 312957

Interest rates and such: Kill the 17.49 (fixed that for you, at least according to your list upthread) comes first. Minimums to the 13.99s.

To get an empty card that you can use for any/all online purchasing (as previously discussed), that you will faithfully pay off completely each and every single month (thus avoiding all interest charges, so it doesn't matter what the rate is), I would suggest killing the 17.44% card first, since the balance is only $1284, and it appears that you will be able to generate enough cash from selling things and cashing in your savings bonds to pay that one off completely.

Note: When you pay off any card, you should estimate how much interest will accrue by the time the payment posts, and add a little more than that amount to the payoff. That way, you should end up with a slight credit balance, which will keep additional interest from accruing. If you don't feel comfortable estimating the interest, use the prior month's interest amount. If you haven't charged anything additional on the card, that should provide an upper limit on the interest that has accrued.

I need to find out when my 0% expires, but it isn't an issue that has risen to the top of the list.

I would strongly suggest figuring out both when the 0% expires and what rate the card will increase to before making more than minimum payments to the 13.99% cards. 13.99% is still a rate that you want to avoid, but if your 0% rate is going to go up to 18% or 20% in a few months, and you don't have a solid plan* for paying the 0% balance off before expiration, you may need to make that one your priority.

*Hoping for a balance transfer offer is not a solid plan.

I will hopefully have two empty cards by the time that rate jumps, so a transfer may be possible...getting ahead of myself though.

Keep in mind - if you plan on using one of the cards for online purchases, you will only have one card available to do a balance transfer to.

Also, be sure that before you do a BT, you:
- analyze any upfront fees vs. interest that you would pay on the current balance during the time the offer extends
- understand what the minimum payment will be on the transferred balance, and ensure that you will be able to fit those payments into your monthly amount devoted to credit card payments
- have a $0 balance and no accrued interest remaining on the card you are transferring to before you do the transfer

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