We have credit card debt of $2000 on a 0% APR MasterCard. The APR is set to go up to 13.99% next month. My dilemma. Do I got to CreditCards.com and hunt down another 0% APR card and transfer the balance?
The pros: I won’t have to pay interest, and thus will be able to pay off my debt faster.
The cons: My credit score will take a hit. It’s a pain to fill out the application and transfer the balance.
We aren’t looking to buy a house or car in the near future. I think our credit score will recover before we need it for anything. I think we’ll do it. I hate paying interest.
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July 19th, 2007 at 11:23 am
This is what we did– we transferred everything to one card as part of a motivation to get out of the debt. It’d probably bad to keep moving it, though interest is terrible!
Do it with an eye towards not doing it again!
July 20th, 2007 at 11:55 am
Thanks. I think that’s what we’re going to do. And I definitely never plan on having to transfer my balance again. After this is paid off, I never plan on even having a balance again!
July 26th, 2007 at 7:49 am
I’ll second that. Even though 13.99% isn’t a bad rate for a credit card, 0% is infinitely better. Definitely do the transfer and don’t look back.
Once it’s paid off ( interest free ) you’ll be banking all that extra money every month. No reason to give more to the bank than you need to.