Transfer balances????

iVillage Member
Registered: 02-09-2004
Transfer balances????
7
Sat, 02-18-2006 - 9:47pm
I'm curious is this a good thing or bad thing to do? I keep getting cc stuff in the mail about open this card and get 0% interest for 1 year or whatever. I'm tempted to open an account transfer my balances and only have 1 card to pay off at 0% but is there a catch? Is this not a good thing to do? ANyone have any thoughts or experience? I would open the new card and cancel the cards that I transferred the balances and I am VERY committed to NOT using ccs at all anymore. My other option is to take out a home equity loan. We have about $8,000-$9,000 in CC debt, a mortgage for about $85,000 on a $120,000.00 house and no car loans and I'd like to get the CC debt paid off by the end of the year if possible. Any suggestions?

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Sat, 02-18-2006 - 10:08pm

Generally speaking, there's not a problem, per se, trying to chase a 0% offer.

All my best,
Danni

iVillage Member
Registered: 05-09-2005
Sun, 02-19-2006 - 12:02am
I totally agree with Danni -- yes, transfer the balance if you can get a lower rate AND are fairly sure you can pay it off within the time period they give you. Of course, if you know you can't, then you have to be ready to transfer the remaining balance to a new low interest balance transfer offer. Sometimes the 2.99 or 3.99 or 4.99 for the life of the balance offers are actually better than the 12 month 0% interest offers.
I sure wouldn't ever suggest that you transfer the credit card balances to a home equity loan or second mortgage. The credit cards are UNSECURED which means your home is not in danger if you cannot make the payments. Don't make the credit card balances secured by tranferring them to a home equity loan, that puts your home at risk.
Good luck with all of this.
Megan
iVillage Member
Registered: 03-29-2003
Sun, 02-19-2006 - 11:30am

Great question :)

                            

iVillage Member
Registered: 03-28-2003
Sun, 02-19-2006 - 12:23pm

Hi,

I'm new to the board, but thought I'd just jump in on this one.

As long as you are going to pay off the credit card and NOT continue using the others, these credit offers are a good deal. (Make sure it's a $0 fee to do the BT and not a feed-credit card.)

Another option is to call your current companies and see if any of them will give you a deal on BT. If you tell them that X company will do so, a lot of them will match.

Finally, destroy your other credit cards if you want, but don't close the accounts in favor of a new one. Part of your credit rating is based on duration, so you want some longer-term credit cards on your record. (I've kept one that I opened in college, that has no points/miles/cash-back/anything simply because I've had it the longest.)

HTH,
giJ

iVillage Member
Registered: 12-12-2004
Sun, 02-19-2006 - 11:24pm
Hi, CM. I think Danni gave good advice (i.e., not cancelling the cc you have already). I finally went online and looked at the various cc options---frequent flier miles, cash bonus awards (not that great), and 0% interest cards. Many have the 0% interest for one year. But, if that is only one year, then they can raise it afterward. I opted for a Capital One card with a fixed rate of 6.9%. Anything is better than the 18.99% rate I was paying with Discover! THe cash bonus things I got only amounted to about $70 total, which is not a lot (Discover). Am glad I finally did it, so I wont have to be paying $60+ per month interest. WHiz.
iVillage Member
Registered: 01-06-2006
Mon, 02-20-2006 - 7:35pm
Also, did you see the Oprah website about her show last Friday? They put up a script exactly what to say to the CC rep when you call and ask them to lower your balance and if they say no you ask for a supervisor and repeat the exact same script. I'm going to try that first myself before moving the balance to another card. I have offers right now on my desk for 0% interest, but for 6 months or a year and the balance transfers charge a fee. I don't want to hassle with that if I can get a lower interest rate right now. I feel like getting another card isn't the right solution for fiance and I right now.
Pam

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iVillage Member
Registered: 02-09-2004
Tue, 02-21-2006 - 10:24am
Thanks for all your input! I think I will check out Oprah's website and see if I can get existing companys to lower rate and if not I'll transfer the balances and NOT use the cards.