Comments on: 0% Credit Card Interest Offer - Floating My Largest Balance http://www.debtbeater.org/0-credit-card-interest-offer-floating-my-largest-balance/ A case study on paying off all debts Fri, 05 Sep 2008 19:24:06 +0000 http://wordpress.org/?v=2.2.1 By: Mr. Debtbeater http://www.debtbeater.org/0-credit-card-interest-offer-floating-my-largest-balance/#comment-108 Mr. Debtbeater Wed, 13 Feb 2008 08:03:20 +0000 http://www.debtbeater.org/0-credit-card-interest-offer-floating-my-largest-balance/#comment-108 I've had a card do that to me before as well. The idea is to float the balance every 10 months to make sure it doesn't sit in one place long enough to actually get dinged for the interest. Hopefully we can pay down enough on the cards to make it an easier process each time. Definitely a good point to make though! Thanks for drawing attention to it! I’ve had a card do that to me before as well. The idea is to float the balance every 10 months to make sure it doesn’t sit in one place long enough to actually get dinged for the interest. Hopefully we can pay down enough on the cards to make it an easier process each time.

Definitely a good point to make though! Thanks for drawing attention to it!

]]> By: Mrs. Accountability http://www.debtbeater.org/0-credit-card-interest-offer-floating-my-largest-balance/#comment-107 Mrs. Accountability Wed, 13 Feb 2008 03:37:55 +0000 http://www.debtbeater.org/0-credit-card-interest-offer-floating-my-largest-balance/#comment-107 Zachary Spencer posted over at my blog a warning that if the 0% interest credit card isn't paid off within the 12 months, they will backcharge the interest. It will be important to keep track of when to move that balance if it's not paid by then. I did NOT know that. Freaked me out, just the thought! Zachary Spencer posted over at my blog a warning that if the 0% interest credit card isn’t paid off within the 12 months, they will backcharge the interest. It will be important to keep track of when to move that balance if it’s not paid by then. I did NOT know that. Freaked me out, just the thought!

]]> By: Mr. Debtbeater http://www.debtbeater.org/0-credit-card-interest-offer-floating-my-largest-balance/#comment-104 Mr. Debtbeater Wed, 13 Feb 2008 02:06:56 +0000 http://www.debtbeater.org/0-credit-card-interest-offer-floating-my-largest-balance/#comment-104 Playing credit card arbitrage sounds feasible, but I'm really not interested in managing all those accounts in my already super-chaotic life. I'm looking for simplicity. However, when moving from a high-rate card to a zero-rate card from year to year until the balances are paid down I really can save some cash. I'm down for that. Dropping from near 30% to 0% for a year makes a HUGE difference! Playing credit card arbitrage sounds feasible, but I’m really not interested in managing all those accounts in my already super-chaotic life. I’m looking for simplicity. However, when moving from a high-rate card to a zero-rate card from year to year until the balances are paid down I really can save some cash. I’m down for that. Dropping from near 30% to 0% for a year makes a HUGE difference!

]]> By: This can change » Blog Archive » 0% Card? DON’T FORGET TO PAY IT OFF. http://www.debtbeater.org/0-credit-card-interest-offer-floating-my-largest-balance/#comment-90 This can change » Blog Archive » 0% Card? DON’T FORGET TO PAY IT OFF. Tue, 12 Feb 2008 14:34:15 +0000 http://www.debtbeater.org/0-credit-card-interest-offer-floating-my-largest-balance/#comment-90 [...] couple people found my post on a 0% interest no-fee Citi Balance Transfer Card useful, so I’d like to [...] […] couple people found my post on a 0% interest no-fee Citi Balance Transfer Card useful, so I’d like to […]

]]> By: Zachary Spencer http://www.debtbeater.org/0-credit-card-interest-offer-floating-my-largest-balance/#comment-89 Zachary Spencer Tue, 12 Feb 2008 13:53:41 +0000 http://www.debtbeater.org/0-credit-card-interest-offer-floating-my-largest-balance/#comment-89 I actually <a href="http://blog.zacharyspencer.com/2008/01/16/thoughts-on-leveraging-0-interest-cash-advances-to-earn-interest/" rel="nofollow">was considering something like this</a> except using the $$$ to drop into a savings account, as I have no outstanding CC debt. Unfortunately, I ran the numbers with a 3% balance transfer fee. I later <a href="http://blog.zacharyspencer.com/2008/02/01/addendum-to-thoughts-on-leveraging-0-interest-cash-advances-to-earn-interest/" rel="nofollow">added an addendum</a>, but have yet to run the numbers to see how much I would earn. In your case, however, you are literally *earning money* for every dime you save in interest! To be perfectly honest, even a 3% initial fee is worth it for a 12 months 0% balance transfer, especially when you would normally be paying 10%+ APR. Basically you would be replacing the 10% compounding interest rate with a 3% one time finance charge. Then repeat every year and it turns out your paying 3% once on all your cards, as opposed to an incredibly high amount every month. I actually was considering something like this except using the $$$ to drop into a savings account, as I have no outstanding CC debt. Unfortunately, I ran the numbers with a 3% balance transfer fee. I later added an addendum, but have yet to run the numbers to see how much I would earn.

In your case, however, you are literally *earning money* for every dime you save in interest! To be perfectly honest, even a 3% initial fee is worth it for a 12 months 0% balance transfer, especially when you would normally be paying 10%+ APR. Basically you would be replacing the 10% compounding interest rate with a 3% one time finance charge. Then repeat every year and it turns out your paying 3% once on all your cards, as opposed to an incredibly high amount every month.

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