Mulling over some concerns about BTs...
 

I need an online calculator that helps one figure out the benefits of saving with balance transfers. I have a zero percent card that will reset to about 19% percent in the summer. Read below to see what I am looking for, please.

I keep getting these offers on my paid off cards to use their BT offer for long term. One is 4% APR for 24 months with no transfer fee. While I think that probably is worse than 0% with a fee, I would like to see the conversion comparison in black and white, no gray wondering. I only have one card with a zero balance that offers a 0 percent for a shorter term right now.

I'll take the insult posts with the helpful one that answers the question. I got my DH's W-2 yesterday and while I can rejoice about how much he made, I am looking at a tax bill I will dread. I may have to pay for tax help this year. Haven't had to do that since 2006. Anyway, I may need a short term loan through my credit card.

What's this got to do with travel points, miles, perks etc? I'll have to get back with ya on that!!! @:-)

Anybody got a suggestion link, please? TIA! :)

http://www.creditcards.com/calculato...e-transfer.php
http://www.bankrate.com/calculators/...alculator.aspx

Another thing to take into consideration is the credit lines. You don't want to transfer a balance that will put you over 50% on any one card, I'd keep it below 25% myself but don't know what the best number might be.

How this relates to points, don't tie up your best point earning card!

The way they apply payments to a BT means you pretty much need to ice the card while you have the BT balance on it.

Credit card interest compounds while balance fees are one offs and on the balance only. I'm sure there's a point at which the balance fee becomes the more expensive option, but it's probably so high you wouldn't consider it anyway.

The calculators mentioned upthread look good; alternatively, you could ask anyone who passed 8th grade to help you with the math.

My suggestion: Don't do a balance transfer. Instead open a card or cards with 0% interest on purchases for 12-18 months and use MS to transfer the balance; the rewards from nearly any card will more than cover the MS costs.

My second suggestion: spend less on yourselves and more on your debt until it is gone. Good luck!

------------------------------------------------------------------
No problem with the 2nd admonition. This is debt left over from the 18-month+ unemployment years (actually 2 years but had some interim temp jobs and didn't apply for unemployment payments, either) where we barely held on to the house. We have paid off thousands in 2013 and anything we couldn't paid off, did the BT for a year. Hence, the reason for the next strategy as I insist we have a substantial emergency fund untouched.

I figured I would be misunderstood here but again trying to make wise comparisons to do what is best next. Attention to detail in managing money is daily for me. I give myself most Sundays off, however. :D

OH, and one more thing about the first suggestion. I did something unwise just recently. I clicked on the Amex Gold pre-approved icon that led me to an app. I thought I was finally going to qualify for the 25k MR points that were elusive for years!. Did the app and realized I didn't have the app with the bonus. A hard pull for virtually nothing except an AMEX Gold, no AF. With that one application, I figure the score decreased so I hesitate to pull the bow back again. Might miss the target for a card with 0% on purchases right now.

-----------------------------
Touche!! I left myself open for that one....

I over analyze perhaps or generally have a lack of confidence when making decisions. The good thing is my DH still loves me! :)

------------------------------
Thank you. :)

--------------------------------
Thank you, Haley. Generally, I do make sure I don't combine BT with spending. Good call! :)

You also have to keep in mind the fact that interest compounds on a declining balance. For example, if you were to pay off the whole balance in a year rather than the 24 months, you wouldn't be paying 4% of the initial BT, but rather 4% of a steadily decreasing balance. Depending on your payoff schedule, it may make more sense to pay the interest than the fee on the whole balance.

============================
THANK YOU! Exactly how I was seeing it. Just couldn't express it as well as you did. :-:

That's a good point. If my math is right, and using a 3% BT fee 0% APR card as comparison, you pay a smaller amount above the principal with the 4% APR if you pay in full in 17 or fewer months. At 18 months the 0% APR becomes a better deal.

-------------------------------------
In round numbers, let's say it's $3500 at maturity this summer. Goes to 19% thereafter.

Having no access to a long term 0%, 3% fee at the moment, how does this shape up with 4% APR for 24 months vs a 0% (with fee) for 12 months if I find such an offer? Or does this require a specific payment amount every month to know for sure?

BTW, I plan to offset some of the expense of the APR or the fee by using a $100 bank account bonus I obtained during a BF promotion for an online checking account. It took over 50 days to obtain but Cap 360 kept its word! And, I got free checks to liquidate my opening deposit.

How can you not find a single card with 0% on purchases? I am still convinced that the way to do your BT is by buying VRs or GC with a new card and paying off the old one. Especially with a manageable number like 3500. It could be opened by either you or SO.

Of course with a number that small you could easily bounce the debt back and forth between two points/cashback cards that have closing dates about two weeks apart, using two BBs. Not that I recommend doing so for any long period of time.

==========================
Thanks for the response. I guess I don't have an answer right now. Maybe with some digging, time will tell.

I don't have the BB yet. I am trying to find out if having had a SERVE keeps me from having a BB. Something I read somewhere....sigh.

Oh, good, Sunday is almost here! :D