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.

$4924.11 Paid To Date

Since I started this blog, I have paid off $4924.11 not counting husband’s car loan. I have completely paid off one credit card and have most of the money for the other one in savings. Next week I will pay off more and try and get details out of husband about his car loan. Also next week I will pay off one of my student loans and at least one of the husbands. I am so excited I can barely contain myself.

According to my trusty spreadsheet, we still owe: $30,943.42 – mostly to student loan companies.

Link to the the details.

Making Husband giddy

Paying $1000 off the AMEX card has made husband positively ecstatic. He walked in the office this morning after checking the balance online talking about making an extra payment so the balance is below $2000 (currently $2027.27) for the first time in ages. Dave Ramsey is right about one thing, psychology of debt paying is important.