Bad habits die hard

iVillage Member
Registered: 12-12-2004
Bad habits die hard
7
Thu, 06-16-2005 - 5:42pm
Hi, Danni and everyone. Well, I goofed. Got a new debit card from bank. (they send one each year). Forgot to activate it. Used cc in grocery store. The same cc I swore I would not use. Again. So, had to pay extra on the cc because of charges. Bad habit #2: online shopping. It's that time of year. Graduations,parties, showers, barbeques. Overspent on party. Have nothing to show for it. So, into the drawer the cards will go. cc AND bank debit card. Read somewhere that the FED is revising rules on credit card borrowing, disclosures, fine print, etc. And, they want consumers to have increased monthly payments. Go to Cardweb.com. You can figure out what you owe, how long. My, what an eye-opener. It will take 118 months (at least, it's not 30 YRS!) to pay off my one debit card, making minimum payments. Question: Should I tranfer balance on one credit card to another that offers the teaser rate of 2.9% interest for life of balance? Thanks for listening. Sigh. Whiz.
Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Thu, 06-16-2005 - 6:37pm

Hey whiz - we all slip back to old habits sometimes - the trick is to do it less and less frequently.

All my best,
Danni

iVillage Member
Registered: 12-12-2004
Thu, 06-16-2005 - 6:47pm
Thanks, Danni, for the education on this transfer thing. I think I will just keep the same card, and pay on it, but ask them to lower the interest. I did that with my car loan (which recently changed hands--new company merger thing), and I e-mailed them that I want a cheaper loan. Thanks for your support. Whiz.
iVillage Member
Registered: 05-09-2005
Thu, 06-16-2005 - 8:27pm
Hey Whiz,
I don't think Danni meant not to transfer the balance to the new card -- you would save tons of $$$$$$ in interest. She just means you have to be really careful to NEVER ever use the card you transferred the money to. If you do, you will be sorry, because they will always apply your payments to the balance that has the lower interest -- the balance you transferred to get the good rate. Anything extra you put on the card will be a higher rate, and won't get paid until the balance transfer amount is paid off. And all the time, the higher interest charges will accrue interest charges. BUT really, 2.99% is a great deal. You should do it.
Megan
iVillage Member
Registered: 12-12-2004
Thu, 06-16-2005 - 8:50pm
Hey, Megan--Thanks for the clarification. Now, how do I do this? Just got a teaser from MBNA and Capital One. The MBNA is the one with the 2.9% interest rate for transferred balances. Do I just write down the other cc# and tell MBNA to take over? Will that close the other cc? Or, should I call/write/e-mail the cc I have now and tell them I have a teaser offer of 2.9% from another cc to transfer that balance and see what happens? I also got an offer from my bank to upgrade to another debit card. I just shredded it. Thanks. Let me know how I should do this. Thanks a million. WHiz.
iVillage Member
Registered: 05-09-2005
Fri, 06-17-2005 - 2:35am

Hi,
Just call the MBNA credit card company and they will transfer the old card to themselves over the phone. You just have to have the old (higher rate) credit card handy to give them the credit card number. You should be aware that the new card generally charges a one time transaction fee to transfer the balance -- there will be a limit how much they will charge -- even with the transaction charge it is still a great deal. You will save tons of $$$$$$$$ over time. Of course, you can never be late paying MBNA or they will raise the interest rate. Good luck And no, the old card will stay open unless you request that they close it. You could just keep it, but never use it. Or you could ask the old card company to close your account so you aren't tempted to use it. Make sure that you ask them to put "closed at customer request" on your file if you do close it.

Megan

Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Fri, 06-17-2005 - 9:00am

I didn't see it mentioned but also check for balance transfer fee...it's usually 3%

iVillage Member
Registered: 12-12-2004
Sat, 06-18-2005 - 12:52am
Thanks, everyone for explaining this complicated transfer process. Havent done it before. Found out the MBNA is like an Amex. DH says to consider it, but to put the card in the desk drawer again, and not use it. It's like a game between us--to see who can pay off something first. The 2.9% is for the life of the balance that I transfer. DH says to wait until I get one for 0%, but I'm sure there is a catch somewhere. I appreciate your well-researched input. WHiz.