Changing our strategy

Avatar for meandmypea
iVillage Member
Registered: 03-27-2003
Changing our strategy
1
Fri, 10-03-2008 - 9:46pm

During the last month or so, we have transferred all balances to lower rates.
-Three are now fixed until payoff at 3.99%
- One is fixed at 2.99.
- Two other ones are 0% rates that come due in June & September(so they'll have to be paid off the billing cycle before).

We have a fixed dollar amount that we pay per month, and we did the usual strategy of paying minimums on all but the highest rate card and snowflaking everything to that one. However, since we need to make sure that we can pay off those 0% cards before the intro rate expires to avoid doing another balance transfer, we're going to pay minimums on all and snowflake the rest to our ING since our blended APR for the cc's is 2.5%, and ING is earning 3%. It may not seem like much, but a 0.5% difference on $35,000 is $175. Better to have it work for us than against us. And this way, when those rates are due to expire I can pay them off in full. After the 0% cards are gone, we'll resume our normal snowball strategy. But until then, I guess I won't be adding much to the weekly snowflake totals.

I have also been able to pick up a small side job in addition to my regular job that is bringing in an extra $225 a week, and all of that is going straight to the ING as well, so that we can build up our emergency fund/Christmas fund at the same time. I'm keeping my fingers crossed that it can stay like this until we can pay everything off. This could allow us pay our debt off up to a year earlier than we expected!

Bridget



Bridget
iVillage Member
Registered: 11-17-2007
Sat, 10-04-2008 - 2:52am

sounds like you got a great plan there.


Mary Ann


I did almost the same thing when I needed money for my teeth I borrow money at 3,9 and put it into a saving account that is making 4,01 That is nothing really but I got the money when money was cheat. I am looking for 3.9 for the life of the loan for around 12,000 now and it has not showed up in my mail box.