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Balance Transfer ???


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The last post in this topic was posted 3281 days ago. 

 

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Hi all,

 

I have been carrying balances on my credit cards for too long, and am trying to develop a plan to pay them off. I just got approved for a BOA Platinum Visa, 1000 limit, with 0% balance transfer for 15 months, and am hoping someone with more knowledge than me can take a look, to make sure I'm not making any obvious mistakes.

 

Current active balances are 3100 or so, 25%, on Citibank, with a 3500 limit. Also 4100, 25% on Chase, with a 4800 limit. Bad utilization, I know.

 

I've been making about 150% of the minimum payments on both cards monthly. No lates on these accounts, but seemingly no progress either.

 

I have stuffed both cards in a drawer. No new charges allowed! The BOA Card has a 3% BTF.

 

Does it matter which balance I send to BOA? Once I do the transfer, I am hoping to throw as much money as possible at the Citi and Chase cards, with hopes of paying them down. And pay only minimums towards BOA, for the whole 15 months, since it accumulates no interest? Also, I was kinda hoping for a higher limit on BOA so I could get more zero interest happening. Can I ask? How does that work? I have never made a BT before, and don't want to make a silly mistake.

 

I know this is dependent on NOT USING THE CARDS! I'm really hoping to trim the budget, and gets these cards paid OFF within the next 2 years.

 

Any insight you have would be greatly appreciated. Thanks!

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This is my common sense idea but I would wait for more experienced people to weigh in as well.

 

I would inquire with Citi and Chase even though it's a long shot, about lowering interest rates. I'd also ask about CLI's in order to lower utilization % and weigh my decision on what you find the answers are. You are right though by saying NO NEW CHARGES or else it's one step forward and 10 steps backwards.

 

If you can afford to pay only the minimums on Citi and Chase plus X amount then I would only balance transfer X amount each month so that you can PIF the new card each month to keep the newer card as low a utilization as possible. I would think by doing this, it might allow you to get a CLI on the new card that much quicker.

 

The other idea would be to have as much 0% balance to save the interest but then you would have three cards all with high utilization and that might out weigh the savings benefit.

 

Good luck in what you are trying to do.

 

 

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You can only do the promo BT once. You should ask for a higher limit so you can at least take one of the 25% cards down to zero. Then you pay near the minimum on the zero APR balance and as much as you can on the stuff that is still at 25%.

 

A plan for this starts with how much money per month you can pay toward the debt. Think in terms of an absolute amount-- not some percentage based on the minimum payments. The minimum payment means practically nothing in terms of how long it will take to pay off.

Edited by mk_378
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As a suggestion, Call the Issuer of the Card that is offering 0% for 15 months and request a credit line increase to

cover your total debt on the other cards.

 

They may surprise you and grant your request. The worst they can do is say "NO"

 

Up to you, but in my opinion, worth the call.

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