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:
- Move Chase II balance to Desert Schools. 3% fee for current balance $6663 = estimated fee $200
- Move Bank of America to Chase II 2% fee for current balance $687 = estimate fee $14
- Move Chase I to Bank of America 4% transfer fee for current balance $5790 = $232
- Move Chase III to Wells Fargo 5% transfer fee for current balance $5106 = $256
Here's what my progress looks like:
- [COMPLETED] Moved Chase II balance to Desert Schools. 3% fee for current balance $6590. Balance transfer fee was $197.70.
- [COMPLETED] Moved Bank of America to Chase II 2% fee for current balance $615. Balance transfer fee was $12.15.
- Move Chase I to Bank of America 4% transfer fee for current balance $5790 = $232
- [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!
“Thanksgiving and Christmas are right around the corner. It is tempting to use the statement credits to splurge…”
Don’t you dare! Gaffer tape those suckers together then encase them in a block of ice at the back of the freezer so you can’t give in to temptation!
Myles Money recently posted..Bubble Trouble
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In the long run it looks like you will save quite a bit of money with those transfers. Like you say though, it might difficult to avoid the temptation of spending but with some determination you should be ok. 🙂
Rob recently posted..Welcome to Debt Spot
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Good job, Mrs. A! It’s also comforting to know there are plenty of us out there struggling to pay down our credit card debt. I thank you for your candid disclosure of your financial picture and the strategies you’re using to keep it under control.
Deborah Collins recently posted..Is the Virgin Mary Appearing on Earth?
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Wow! The finance charges must’ve been blinding, to make it worth spending over $400 to get to 0-interest accounts. Credit card companies inflict some serious rips on consumers.
Funny about Money recently posted..They were the best of students, they were the worst of students…
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