When paying off credit card debt the last thing on most people's minds is to open up another credit card.
It took me some time to decide if a balance transfer card was a good idea or not. I first paid off my Chase credit card to get a taste of how serious I was about paying off my debt, I did a lot of research on which card I wanted to do the transfer to, and I also did all the math on what the transfer cost would be.
Looking at the balance transfer math by using my Vertex42.com spreadsheet I found out that I could be saving $9,345 in interest 😳. If that isn't a slap in the face! 💲
So I finally opened up a card with Citi Bank that allows balance transfers at a 0% interest rate for 18 months. There is a charge of 3% to transfer the money from my old card to my new card. However the one time 3% charge is way cheaper than my 19% interest on my old credit card.
In just the 3 months that I've had a balance transfer card I've already saved $650 by not paying interest. I've also been attacking my remaining credit card debt like crazy and am down to $5,741 from $8,600! The pictures I attached showed how much I would be saving if I only made minimum payments, but I'll save $2,278 MORE because I plan on paying this balance transfer card before my 18 months of 0% interest is over.
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