Update on Balance Transfer Plan (Fall 2014)

Back in October I wrote about my plan for my balance transfers.  Two of my credit cards were not at 0%, and on two others the promotion was ending (in December).

I really had to put together a plan this time because three of the cards were Chase and that made it tricky because I had to use other banks (Chase doesn’t allow balance transfers from one Chase card to another).

Also, my budget really tightened up when I bought my brand new car, and I know the credit card payments will nearly double once interest is being added to the balance, so I couldn’t fiddle around waiting to make the balance transfers.

In the past I’ve been a little lax at doing balance transfers immediately and ended up incurring finance charges for several months. I don’t plan to let that happen again. It’s amazing how much easier it is to follow through appropriately when a person isn’t feeling anxious and stressed out.

My plan was to:

  1. Move Chase II balance to Desert Schools.  3% fee for current balance $6663 = estimated fee $200
  2. Move Bank of America to Chase II 2% fee for current balance $687 = estimate fee $14
  3. Move Chase I to Bank of America 4% transfer fee for current balance $5790 = $232
  4. Move Chase III to Wells Fargo 5% transfer fee for current balance $5106 = $256

Here’s what my progress looks like:

  1. [COMPLETED] Moved Chase II balance to Desert Schools.  3% fee for current balance $6590. Balance transfer fee was $197.70.
  2. [COMPLETED] Moved Bank of America to Chase II 2% fee for current balance $615. Balance transfer fee was $12.15.
  3. Move Chase I to Bank of America 4% transfer fee for current balance $5790 = $232
  4. [COMPLETED] Moved Chase III to Wells Fargo 5% 4% transfer fee for current balance $5055. Balance transfer fee was $194.44.

When I was planning my balance transfers, Wells Fargo was at 5%, but they lowered the transfer fee to 4%. That’s great, and I saved myself over $50 in balance transfer fees.

Also, I applied for a Capital One card because they offered a statement credit, I was approved for $10,000.  Originally I had planned to move the Chase I card balance to Bank of America – the balance transfer fee was 4%. However, I’ve decided to use the Capital One card instead, since the balance transfer is 3%. The balance is currently $5591.00 and the balance transfer fee will be $167.73.

Currently our credit card debt is as follows:

  • Chase (new balance transfer) $578.79
  • Desert Schools $6667.70
  • Chase I $5591.00
  • Wells Fargo $5055.44

In September, the total was $18,195.

The balance now is: $17,892.93.

In two months, the amount has gone down by $302.07.

However, I’ve incurred $404.44 in balance transfer fees in the last month. That’s okay. It is worth it to save finance charges.

Each month I will be paying $280 towards the credit cards. It is not a lot to be sure, but it will make a dent and we will see progress! I’ll keep you updated.

So that’s where we’re at. I can’t believe Thanksgiving and Christmas are right around the corner.  It is tempting to use the statement credits to splurge, but I am determined to put them toward paying off some of this debt! 

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