A dumb moment... trying to fix it.

**mommy4ever** · 01-20-2009, 11:42 AM

I had a real dumb moment and missed the new interest rate, and I have a high balance on this card. If I go by balances, I'll end up paying nearly $3000 more in interest. However, if I pay it first, I'd save that $3000. It doesn't lengthen or shorten the amount time paid, we're looking at Feb/mar no matter which way. However, there's no instant gratification in paying things off fast.

I'm thinking I'm throwing all extra money at this one first. It'll take 7 months to get rid of it, and the balance of the snow ball pays off the next one the same month.

I'm really annoyed by the high interest, I did call to see if they'd lower the rate and they refused.

I have the option to also transfer part of that balance to lower interest. That would pay it off 3 months sooner, saving even more money. Plus paying off others faster as well, due to a large payment being freed up.

I'm not sure what to do, I do think i should lower the rate if I can, if it means transferring then I will do that. It makes more sense, less interest to pay means more principal paid.

**Greebo** · 01-20-2009, 12:03 PM

If your spending habits have changed and you will never use the card again, will close and destroy it after its paid off, and will never open another card again for new debt, then go ahead and save money long term by doing balance transfers. No reason not to.

However if you're going to use the card again, why bother doing a balance transfer and making the potential hole even bigger, right?

**mommy4ever** · 01-20-2009, 12:12 PM

Gotcha, I never intend to use that card again and it will be closed once paid off.

I will only be keeping one card as when we reserve hotels etc I need to have one. But intend to pay cash for those stays.

**Greebo** · 01-20-2009, 12:58 PM

Originally Posted by mommy4ever

Gotcha, I never intend to use that card again and it will be closed once paid off.

I will only be keeping one card as when we reserve hotels etc I need to have one. But intend to pay cash for those stays.

Hotel's take debit cards.

**mommy4ever** · 01-20-2009, 01:02 PM

To pay, yes, but not to reserve. With out a CC here, you need to be sure you're there early or they don't hold the room, we typically won't arrive at that time without having to take more time off work.

**57plymouth** · 01-20-2009, 01:04 PM

I agree. If you are going to close the account, then transfer the debt to the lower rate to save some money.

If you keep either open after paying them off, you are doing youself no long term favors.

**missmanny** · 01-20-2009, 11:50 PM

I think that you should definately try to do a balance transfer, every penny you save in interest is money that you will be able to apply to the debt to get it gone quicker.

Won't lower it my but... you will be the one laughing when some one else gives you a better rate and then they get none of your money in interest. as they say - a bird in the hand!

**ConnieD** · 01-21-2009, 08:04 AM

Originally Posted by Greebo

Hotel's take debit cards.

Canadian debit cards are not the same as American debit cards. Ours are not "attached" to a Mastercard or Visa. Ours are strictly cards from the particular bank our accounts are with....... and can not be used to secure reservations or the like.

I never understood this until a few years ago when we were in Florida and I was charging on my Visa. The clerk asked me "credit or debit"? I looked at her a little bewildered and said "it's a credit card". She must have had to explain this to people before because she then told me how in the US these cards are also attached to bank accounts and can be used as debit cards.

So really, if Canadians have a lifestyle that need to "reserve" hotels, car rentals, etc.... they need one credit card........... AND self control