I'm bummed. With all the balance transfer cards I applied for, I didn't do it right, and I've still got a Chase card at 14.99%.

I paid off my FIA card, and it currently has an offer to transfer up to $10,200. I was jazzed about that, but then I realized there is no cap on the 3% transfer fee. I need to transfer almost $8000. That's going to cost around $240 in fees. Bummer.

There were a couple of glitches. Mr. A and I went into town, made a day of going to get another of the heavy machinery tools that he needs for his business. I brought the Discover card I'd earmarked for this purchase – which would have given me a percentage back on the purchase, only to find the company doesn't accept Discover! The only other card I had with me was one I'd just taken down to zero with 9.9% interest AND no points, percentage back, nothing. And this was a $3000 piece of machinery. OUCH.

Last week I moved that purchase over to Discover – I don't think we get percentage back for balance transfers.

I hate having to spend $240 in fees… I really don't like the idea of applying for yet another credit card. Shoot. I am not sure what my FICO score looks like. On the other hand, if I just let the money sit at 14.99% interest, and make the minimum payment of $150, I'm looking at $296 in interest fees.

I guess maybe I should just bite the bullet, eat the $240 transfer fees and stop paying 14.99% interest immediately. What to do, what to do? If I have to do this again in the future I will definitely think this out more thoroughly.

If I apply for another card tonight, it might not be enough (need at least $8000 remember?) and it could take another 2-4 weeks to find out. I'm going to figure out exactly how much I'm paying in interest each day on this card.

Here's how to do it:

1. Find the daily interest rate. This card is at 14.99%. Divide the interest rate $14.99 by 366 days. 0.00040956% per day.
2. Now multiply the credit card balance owed $7877.62 by 0.00040956%.
3. That comes to $3.19 interest each day.

As we all know, those dollars add up. Even $3.19 a day is nearly $100 by the end of one month.

I wonder what Madison or Raymond would do? If I chance waiting 2-4 weeks to find out if a new card will give me $8000 and 0% interest, I'll still end up paying $75 to $99 to transfer the money. 14 days will cost me $45 in interest, plus balance transfer fees would make it $120 or $144. However, what if the card limit isn't high enough? Should I apply for two cards? It could end up costing me $45 in current interest fees, plus two card balance transfer fees $195 for two cards with $75 caps or $243 for two cards with $99 caps, or $219 for a card with each cap amount ($75 and $99).

Are you confused yet?

My best case scenario is I find a card that approves the $8000 balance transfer with the $75 cap and this happens within 7 days. My interest for seven days would be $22 plus there is the $75 balance transfer fee.

Worst case scenario is I have to get two balance transfer cards, pay $99 cap on both and $95.70 for 30 days waiting to get the card and money transferred, so $293.00. At that point it would be better to just go with the $240 balance transfer on the card that I know will take the entire amount and is offering 0% interest.

I have about $1500 left on one of the new cards, that would be $45 in transfer fees. I also have a new American Express card that could handle the $8000 transfer with a $99 cap on transfer fees, but it is 4.99% interest for the life of the balance. No wait, that had to happen by October 16th, 2008. Cuss word.

Another option would be to take every bit of money we have in our checking accounts and pay everything toward the 14.99% card, including money for living expenses. Then use the new American Express card which is 0% interest for purchases until March 2009 to pay for the living expense costs. Hmmm…

I am going to wait for at least one or two days to make up my mind about what I should do. I am a little iffy on whether I will be approved for one or two more cards this soon after applying for the last five, especially with the state of our economy. I am leaning toward just going with the $240 in transfer fees.

What to do, what to do??

Yours Truly,

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