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URL:  https://boards.fool.com/0-for-14-months-on-bt39s-you-need-to-34423847.aspx

Subject:  Re: Input on BT Date:  2/29/2020  9:56 PM
Author:  aj485 Number:  312803 of 313006

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.

AJ
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