What would you do?

[sunray16]

I'm too embarassed to elaborate on the ridiculous amount of credit card debt we have, so I'll give a "what if". Let's say I have a few cards, each with a good size balance and varying interest rates from 4%-12%. We get TONS of offers in the mail and they all get shredded, but one today caught my eye. It's a permanent fixed rate of 2.9% on balance transfers, no annual fee, but transfer fee of 3%.

Would it be smart for me to get this card, transfer at least the highest rate card balance to it (if not more), and cancel the old card? I'm a little nervous about trading one card for another, but I think the amount I would save in interest would make it worth it. Or is this a bad idea?

[Luv2BeFrugal]

My Dh and I did that very thing...went from a CC with a 17% rate to a fixed for life 4.9% on the transfer. It was the same 3% fee. Unless you can pay the balance as it is now, in full, in about 6 months time...it is TOTALLY worth it!! We've saved a bundle and are watching the balance drop quickly because more of our payment is going to the actual balance and not to interest.

If it helps you pay off faster (and not pay as much interest) it's a win-win situation.

[sdrjeolsen]

I think its a good idea if you are disciplined to pay it off and not charge more. The new charges usually are at a higher rate and any payments go to the lower rate stuff first. So, if you're not careful, the balance can creep up and the interest accumulates on the higher stuff. Otherwise, I think its a great idea.

[Little Birdie]

if you are disciplined to pay it off and not charge more. The new charges usually are at a higher rate and any payments go to the lower rate stuff first. So, if you're not careful, the balance can creep up and the interest accumulates on the higher stuff.

This is worth repeating!! Once you transfer to the card, never use the card as a card.

[FrugalMomof3]

I would go for it! In the long run it's less interest.

[Cricketlegs]

hey, I see you are new...have a go at this site....

http://www.whatsthecost.com/snowball.aspx?country=us

[sunray16]

Oh, absolutely, we wouldn't charge anything else to the card. What I have done in the past when I transferred from a higher rate card to a low one is not even activate the card when it comes in the mail. I just file it in my drawer with all the bills, or I shred it...shredding it would probably be the best course of action.

[Little Birdie]

Oh, absolutely, we wouldn't charge anything else to the card. What I have done in the past when I transferred from a higher rate card to a low one is not even activate the card when it comes in the mail. I just file it in my drawer with all the bills, or I shred it...shredding it would probably be the best course of action.

Good, so often the fine print gets missed. I do believe that is what the companies are counting on...

[lanford66]

We've done this and its amazing at how much interest we saved. A lot of the offers will have a maximum of $75 to transfer, but like others have said, you'll save 10 times that amount in interest. My only advice is to cut up the card you've transferred from so you're not tempted to use it. I had to do that or else I would have used mine.