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In this case, it would actually cost you money to transfer this balance. With your extra income, your snowball should be in the $1500 - $2000 a month range, right? That means your Citi payoff should only be 3 or 4 months away, meaning you would pay 9.99% on half of the current balance (or less) for only 1 or 2 months, which, at most, would be $50. Even adding in the extra $5 or so of interest that it will cost you on the student loan to just pay the minimums, your total cost will be a maximum of $55.

If you wanted to BT the money off of Citi in time to make sure you don't pay any interest on it, you should start now, requiring you to pay at least a 3% fee on your current balance of $6204, which is $186 - more than 3 times the maximum interest you would end up paying by just using your snowball on the Citi card rather than paying off your student loan.

If you do make the Citi card the target of your snowball, you should be able to have a REALLY big happy dance in August or September, celebrating paying off both debts.


That makes a lot of sense. Should I consider revisiting the BT option a week or two before the July expiration date for Citi, or will it be a wash at this point? I guess I will have to crunch the numbers when the time comes, based on the balance. Thanks!

Put the entire amount of the raise toward the debt. That's what I would do if in the same situation.

Great idea, I like it! ;)
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