2
Debate: did my credit card balance transfer actually save me money or just drag things out?
I had this $4,200 balance on a card with 22% APR. So I moved it to a 0% balance transfer card thinking I'd knock it out in 6 months. Figured the 3% fee was worth it, came to $126. Well here I am 11 months later and I still owe $1,100 on it. I paid $104 a month but kept telling myself I had time. Now the 0% is about to expire and I'm wondering if I just fooled myself into taking longer than if I'd just gritted my teeth on the high interest. Did any of you actually come out ahead with these transfer deals or is it mostly a mental trick?
2 comments
Log in to join the discussion
Log In2 Comments
kaid5914d ago
Knock it out in 6 months is always the plan, but life gets in the way... I've done the same thing. The math works if you actually pay it off, but the trick is you end up paying less per month and that feeling of "I have time" just drags it out. You saved about $200 in interest vs. the 22% card if you'd kept that same $104 payment, but you took way longer. Next time, set up automatic payments for double what you think you can afford, or just leave the balance on the high-interest card so the pain makes you pay faster.
5