On August 16th I said, “I am going to make a point this month to transfer two credit cards over to another one that is offering 0% interest until May 2010. I am tempted to go with the 2.99% interest for one year… but will probably go with the 0% offer. I had better hurry and do the transfer, before they decide to do me a favor and close the account, since I haven’t used the account in a while.”
I never did get around to transferring the balances, and on Sunday took a look at what we’d be paying.
I have one card that is over $9000 and killing us with interest. $110 interest per month. I was too new to credit card arbitrage last year to know what I was doing, or supposed to do, so right now the majority of my credit card debt is with one bank. That’s not so good when I have one card at $9K accruing interest and I need to move it someplace else, and the only available card open is with the same bank.
If I wasn’t concerned about my credit score, I could look for 0% balance transfers with a limit on the transfer fees. But since I absolutely can’t afford to do that, I will need to switch among the accounts I have available.
#1 Chase Card 1 with 13.24% interest.
#2 Discover with 12.24% interest.
#3 Credit Union Card 3 with currently 0% interest.
#4 Citicards with 9.24% interest.
#5 Chase Card 5 is Chase, currently 0% interest.
Card 6 is Chase, $13K limit and 0% interest until June 2010. Balance transfers will cost me 3% of the amount being transferred. OUCH. OUCH. OUCH.
I need to move #3 ($6441.50) to Card 6. That’s going to cost $193 to transfer that balance. (When I saw that it was going to cost that much, I couldn’t bring myself to do it.)
Then once #3 is paid off, they usually offer me another 0% interest for balance transfer, and I should be able to move the complete amount from #1. If the balance transfer is 3%, we’ll be looking at $289 to move the money over.
And yet, each month I procrastinate, we spend $110 in interest.
But then there’s the refinance of our home. I know we will be waiting at least one month until we try, and if we consolidate the credit cards, it would be stupid at this point to spend $500 just to save $110.
I am also contemplating moving about $2500 over to Mr. A’s business credit card, since one of the cards was used last year to purchase one of his expensive tools. That would lower the amount of money that I personally owe, which should help increase my credit score.
Well, I guess I am stuck in a holding pattern yet again.