Second balance transfer?

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acp03
Posts: 22
Joined: Mon Feb 23, 2015 1:02 pm

Second balance transfer?

Post by acp03 » Tue Aug 13, 2019 12:10 pm

At the risk of looking irresponsible to a fairly well-disciplined personal finance community, I had a question about credit card debt.

Due to unforeseen circumstances, I had to take out a giant loan earlier this year; part of which was paid by a balance transfer to a 0% credit card for 15 months. The amount is significant enough that I am not going to be able to pay off the amount in 15 months despite putting 1/5 of my take home pay towards it. I still have 7 months left but want to think ahead.

Can I do a second balance transfer onto another 0% card - I keep receiving offers and have a "excellent" credit score. I've been very disciplined about expenses and have been able to reign in discretionary spending quite a bit. But really hate to pay interest and looking for solutions.

Thanks!

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whodidntante
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Re: Second balance transfer?

Post by whodidntante » Tue Aug 13, 2019 12:25 pm

I don't see anything wrong with financing an unexpected expense in the least expensive way possible.

Yes, you can roll that debt as many times as you need, so long as you can get approved for a 0% APR with a different issuer. Issuers do not normally allow a balance transfer from their own cards.

rj342
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Joined: Tue Apr 30, 2019 12:21 pm

Re: Second balance transfer?

Post by rj342 » Tue Aug 13, 2019 12:32 pm

I've done that once when I got stuck about to have a nontrivial( for me) balance when the transfer 0% period ended.

A second 3 or 4% fee sure beats letting the leftover balance on the original go up to 10 or 12 or 18%.
Just remember you pay off the second transfer "too soon", in less than another year, you have actually increased the effective APR represented by the fee. Of course if the fee amount is small it can still be worth it because paying it off ASAP while still having option to cheaply let it ride a bit longer if needed can be useful flexibility.

OTOH probably not worth the hassle of the 2nd transfer (which can take a few weeks) if you just have 2 or 3 payments left.

Obviously don't make a habit of it, but life happens and we don't all have household incomes over $250k.

megabad
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Joined: Fri Jun 01, 2018 4:00 pm

Re: Second balance transfer?

Post by megabad » Tue Aug 13, 2019 1:19 pm

rj342 wrote:
Tue Aug 13, 2019 12:32 pm
A second 3 or 4% fee sure beats letting the leftover balance on the original go up to 10 or 12 or 18%.
This. Just be aware of the fee. If you can pay it off short term and this was a one off, should be ok surfing the 0% rate cards for now. If it is going to take you a while, I might just look into a 5 year home equity loan (if home owner) or some other financing method.

Topic Author
acp03
Posts: 22
Joined: Mon Feb 23, 2015 1:02 pm

Re: Second balance transfer?

Post by acp03 » Tue Aug 13, 2019 3:07 pm

thanks rj342. That's a good calculation to keep in mind and I'll try and do the math before picking one option over another.

Appreciate input from others as well.

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