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Floating Credit Card Balances - Success #1 | Debtbeater

Floating Credit Card Balances - Success #1

March 6th, 2008

A couple weeks ago, I decided to go try moving a large credit card balance to a 0% interest credit card offer to try to save myself some unnecessary interest payments.  Well, things appear to have gone very well with this transaction so far.  I now have my almost $6000 balance that was running at an interest rate near 30% completely transferred to a 0% interest card.  This one single move is going to save me nearly $150 a month in interest.

I want to again remind everyone that has credit cards to check the interest rates on them at least once a month to make sure you don’t get hit with a huge rate hike like I did.

So here’s a small screenshot of the summary page on my new card:

citi_card_details2

And here’s the balance summary of the card it all came from:

image

I plan on paying my first payment of 128.05 (I just like round numbers…I know it’s weird) and then set up a monthly payment from my bank to send $100 every month for payments.

One very important thing to keep in mind:  I’ll need to either completely pay off this card before 12 months go by, or transfer it to yet another card.  If I don’t, all of the interest avoided during the 0% promotional period will be added to the account balance.

So, I’m setting up a reminder for myself to have that thing paid off by this time next year, or be prepared to move a $5000 balance to another card.

So, now that this has worked out for me, I think it’s time to go look for another offer and float my next card to it!  However, I REALLY can’t wait until I don’t have to do this crap at all.  I hate using credit cards for anything anymore.  Once I get all these dumb things paid off…that’s it for me!


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13 Responses to “Floating Credit Card Balances - Success #1”

  1. Mrs. Accountability Says:

    Mr. Debtbeater - you got the same card I did, and I called and asked if they would add the back interest. They said some companies do, but they DON’T. You might want to call and confirm for yourself, but that is what they told me. Of course it is a good thing to move the card over to another 0% offer if you have a balance left in a year, but if you don’t do it in time for whatever reason, you won’t get slapped with a bunch of interest.

  2. Mrs. Accountability Says:

    Oh, one more thing. Did you keep track of how long it took for your transfer to happen? I did mine on Saturday and I’m still waiting it to move over and pay my other card.

  3. Mr. Debtbeater Says:

    That’s great news. I don’t like being pressured to get things out the month before expiration, but I fully expect to still have a balance…so I’ll probably just float the money again next year. Thanks for sharing that!

    As for how long it took…I signed up on Feb. 12 and the actual amount showed up on the card Feb. 25. I can’t remember exactly which day I got the card in the mail. However, when I got it I immediately called the toll free number to activate it and the online account started working correctly. Once that happened I was able to make the transfer. (It wouldn’t show me anything until i got the card and activated it.)

    Not sure how helpful that is, but it didn’t take too long.

  4. Carnival of Debt Reduction #130 Says:

    […] DebtBeater is using lower interest credit cards to “float” or “surf” his higher-interest c… to┬ásave on finance charges┬á(just be careful, Mr […]

  5. Amanda @ Me vs Debt Says:

    I got the same deal from Citi… I’ve been happy with it so far. Sure, be careful, but as long as you have a debt-beating attitude - you have made a smart move :)

  6. Amanda @ Me vs Debt Says:

    One more thing - 11.99% APR is still a huge savings from the 30% rate you were paying!

  7. Mr. Debtbeater Says:

    Indeed, 12% is better than 30…but I have no intention on throwing that much interest at a credit card company ever again if I can help it.

    In fact, I really don’t like doing any of this at all. It does save a lot of money though, so I’m gonna do it until I get rid of all of this nasty debt!

  8. kentuckyliz Says:

    You know NOT to make purchases on this card, right? Because whatever you purchase will be subject to the 12% interest rate, but all your payments will apply to your 0% transfer balance first, so your interest on the debt will snowball on and on…..

    Also, the new FICO system will lower your score for account hopping/rate surfing like this, which might lower your score and jack your rates. CC companies can do this, under the “we can change the terms for whatever reason” clause, which is worse than universal default.

    So, debtshifting isn’t solving your problem. You need to sell stuff, get extra jobs, snowflake, etc., and get intense about paying it OFF!!! Don’t be planning your next ratesurf. Plan how you’re going to PAY IT OFF during the promo period!

    Good luck…you can do it!

  9. Mr. Debtbeater Says:

    @kentuckyliz

    Thanks for the warnings, but I’m fully aware that floating balances is not a solution to my debt. We’ve already had to deal with the whole spending outside the budget issue. Floating the balance is simply one of many things that we’re going to do to lower how much we’ve got going out each month to someone else instead of applying the money toward our debt.

  10. No Debt Plan Says:

    My only advice is to make sure you pay it off. I saw your goals were to reduce debt by $2000, and you are $3,000 in the hole on that goal. If you knocked out $5k, you would almost have all of this knocked off. Best of luck.

  11. Blackcard Says:

    Thanks for your help

  12. google adsense empire Says:

    Top Stuff. keep it up, but more links to other sites would help me too.

  13. Ike Escobeo Says:

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