Balance Transfer card

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fiverus
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Balance Transfer card

Post by fiverus » Wed Feb 22, 2017 9:06 am

So I have 1 credit credit I want to pay off, Mastercard APR 14.4%. However I've been reading about best transfer cards DISCOVER IT

If you’re carrying balances on other high-APR cards, this card was made for you. First off, the Discover it – 21 Month Balance Transfer Offer card features a 21-month 0% intro APR on balance transfers, allowing you to cruise until practically the end of 2018 without paying a dime in interest on any balances you transfer (note that there is a fairly standard 3% balance transfer fee). As a cherry on top, Discover it – 21 Month Balance Transfer Offer is available to those with good to excellent credit, typically considered to be a credit score above 670.

Does this seem like something i should do? I owe $8,600. What is your idea or opinions?

Thank you

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oldcomputerguy
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Re: BALANCE TRANSFER CARD

Post by oldcomputerguy » Wed Feb 22, 2017 9:47 am

What is the rate after the 21 months? Can you pay the card off in that 21-month timeframe? If not, and the permanent rate is higher than your existing 14.4%, you may find yourself back in trouble, depending on how much of the existing balance you in fact do pay off.
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

seanmerron
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Re: BALANCE TRANSFER CARD

Post by seanmerron » Wed Feb 22, 2017 9:49 am

fiverus wrote:Does this seem like something i should do? I owe $8,600. What is your idea or opinions?
Could you pay it off in 21 months paying 3% in the end instead of the 14% APR?
Can you stick to paying it off without adding any additional debt to your portfolio? 0% financing can cause us to find ways to spend the extra money sometimes...

Does the new card have an annual fee?

Do you instead have home equity you could transfer the debt to instead for a low rate?

fiverus
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Re: Balance Transfer card

Post by fiverus » Wed Feb 22, 2017 10:10 am

I contacted DISCOVER they have an offer if I transfer $3000 (max credit line at Discover) from Mastercard I will pay 4.3% APR for 18 months, my payments would be $178 per month. Balance at Mastercard would be $5,600 at 14.4% APR.

Yes, I check with DISCOVER after 18months APR goes up 23% APR. But $178 per month is doable so pretty sure it will be paid off.

What do you think? What would my minimum payment be at Mastercard with $5,600 balance?

fiverus
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Re: Balance Transfer card

Post by fiverus » Wed Feb 22, 2017 10:17 am

seanmerron what do you mean Do you instead have home equity you could transfer the debt to instead for a low rate?

How do I go about this? I own my own home. Do you mean home equity loan through my mortgage company?

fiverus
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Re: Balance Transfer card

Post by fiverus » Wed Feb 22, 2017 10:52 am

Does anyone know what this means?

Do you instead have home equity you could transfer the debt to instead for a low rate?

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Earl Lemongrab
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Re: Balance Transfer card

Post by Earl Lemongrab » Wed Feb 22, 2017 11:06 am

fiverus wrote:Does anyone know what this means?
That means taking out a loan against your house to pay consumer debt. It's a poor idea, as you turn unsecured debt into debt that puts your home in risk of foreclosure.

Before even considering that, you have to think hard about how you came to be in this situation. Without changing your spending, you risk clearing the debt with a home loan and then running it back up. I would look to the transfer method if you can't come up with the cash. But again, using a 0% card to transfer only works if you don't pile more on top.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

fiverus
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Re: Balance Transfer card

Post by fiverus » Wed Feb 22, 2017 11:26 am

Earl Lemongrab.

Understood. So, if I use a 0% card to transfer $3000 and pay off in 18 months well understand I cannot use the card. I don't intend to use it. But they will be a balance on Mastercard of $5700 APR 14.4 %. Is this a good plan?

In the meantime, I picked up a 2nd job to pay off debt. I don't want any debt when I retire. Plus I'm putting some money into money market for emergency cash.

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Earl Lemongrab
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Re: Balance Transfer card

Post by Earl Lemongrab » Wed Feb 22, 2017 11:40 am

Are you limited to 3k in transfer? That's not much.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

fiverus
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Re: Balance Transfer card

Post by fiverus » Wed Feb 22, 2017 12:08 pm

My credit line is 3K right now, but they did ask me if I wanted to increase my credit line. I have good standings with Discover, never late payments and paid off balance.

What do you think?

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