Saving money to pay off student loans and consumer debt

Using a Credit Card After Balance Transfer

The introductory 0% interest rate on my credit card is coming to an end. I have the money in savings to pay it off but since I was laid off, I think it might be more prudent to transfer the balance to another 0% interest. That brought up an interesting point.

If the husband or I make any charges on that credit card, we will have to pay off the 0% interest balance, all the while paying the interest on the charges.

So let’s say the balance transfer is for $1500 at 0% until next May. The husband charges car repairs for $100 on the same card at 10% interest. We will be paying 10% interest on the full $100 until we pay the big balance off or until next May when we start paying interest on that too.

The credit card with the balance transfer will have to just sit there until the balance is paid off, whenever that might be.


October 17, 2008 - Posted by | Credit Cards | , ,

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