Ask Terry Questions Credit Card Balance Transfers

Credit Card Balance Transfers

By Terry Savage on June 12, 2019 | Credit/Debt

Hi, Terry. You’ve been of help before and I have a not too complicated (I think) question this time. I have two credit cards with approximately $6k and $3k on them. I have been paying them down with the double the minimum due each month. At some point I’m going to need to replace my 2003 car so I want these cards paid off before that becomes necessary. Should I apply for a new card with a 0% rate for balance transfers for 15-18 months? The new card would only be for taking care of the debt. I know there are balance transfer charges of 3-5% to keep in mind. Or, should I just continue what I’m doing? Thanks.

Terry Says

Transferring a balance doesn’t make it go away!  So it would still be there, impacting your credit report!  I’m glad you’re on track with double the minimum — but did you remember to pay double the ORIGINAL minimum every month — NOT THE NEW MINIMUM — to get these cards paid down in three years or less!

The more you pay, the quicker the balance disappears. Consider it a race — till the end of your old car!  Can’t you do some odd jobs or something to put more money toward the balance so at least one card is gone before your car breaks down!



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