Should I use credit cards at 0% interest to pay off high interest loans?

[snarf]

I have 2 loans for car at 5% and education (private) at 8% totallying around 12,000. Upon looking into consolidation loans and/or private bank loans I can not find a loan at less than 7% or 8%.
My fico is at 770 and will likely go to 800 after a recent dispute. 

If I use 0% intro rates, this would mean I would need to continue to open new accounts after  each 12 - 16 month 0% intro APR run. 
Should I use credit cards at 0% to transfer this debt ?
What are some other options if any? 

[hegemony]

how long do you plan to carry the debt?

 

 

[snarf]

25 minutes ago, hegemony said:

how long do you plan to carry the debt?

 

 

About 3-4 years / or until I have a big chunk to pay off.  Whichever comes first. 

[IndyPoolPlayer]

The thing about 0% intros is they are one time only deal, there's no guarantee you'll get a credit limit sufficient to transfer, and there is no gold at the end of any rainbows.

 

Keep in mind and watch the fine print - sometimes the interest in 0% promos is retroactive. If its not paid in full at the end of the promo period then you're hit with full interest retroactive to day 1.

[centex]

Is it a correct presumption that you have two vehicle loans and then $12K in student loans?  Or did you actually mean that the total of everything outstanding was a mere $12K?

 

What is your current monthly nut and how much above the minimum have you been paying?  And if you are NOT paying more than the minimum, why not? 

[snarf]

@centex A student loan and a car loan added together total 12K. 

I'm not sure what a monthly nut is but I certainly am one on a monthly basis. My monthly net is 6000. I'm not paying more than the minimum so that I can build up an emergency fund for job loss periods. 

[snarf]

Actually that monthly net is 6000 before I've paid my expenses. Do you want what I have left after I've paid all my bills?

 

[centex]

24 minutes ago, snarf said:

@centex A student loan and a car loan added together total 12K. 

I'm not sure what a monthly nut is but I certainly am one on a monthly basis. My monthly net is 6000. I'm not paying more than the minimum so that I can build up an emergency fund for job loss periods. 

Monthly nut is the total required to make the payment...

 

With a total of less than $12K, that should be something that is wiped out in less than two years, which should STILL leave you an allowance to put into savings.  Not paying more than the minimum is costing you money though...especially with a net of $6K. 

 

Depending on what you have in your savings, you may be able to collateralize a share-secured loan which should be a point or two above whatever rate is being paid on the savings...

[peter4lisa]

Monthly nut is the total required to make the payment...
 
With a total of less than $12K, that should be something that is wiped out in less than two years, which should STILL leave you an allowance to put into savings.  Not paying more than the minimum is costing you money though...especially with a net of $6K. 
 
Depending on what you have in your savings, you may be able to collateralize a share-secured loan which should be a point or two above whatever rate is being paid on the savings...

What about the 2% or 3% fee 0%checks for 12 to 18 months you get from PNC Citi Chase Barclsys capital one.

Sent from my SM-G935V using Tapatalk

[snarf]

5 hours ago, centex said:

 

With a total of less than $12K, that should be something that is wiped out in less than two years, which should STILL leave you an allowance to put into savings.  Not paying more than the minimum is costing you money though...especially with a net of $6K. 

 

Due to unexpected expenses savings was depleted, Now, I can not pay more than the minimum until savings is built up. Gotta take care of me first, then unsecured debt.

Edited December 30, 2019 by snarf

[IndyPoolPlayer]

21 hours ago, snarf said:

Due to unexpected expenses savings was depleted, Now, I can not pay more than the minimum until savings is built up. Gotta take care of me first, then unsecured debt.

"Taking care of me" is costing you some serious coin in finance charges on that unsecured debt. More than what you would earn in any savings or money market account. So it's really NOT taking care of yourself.

[snarf]

21 hours ago, IndyPoolPlayer said:

"Taking care of me" is costing you some serious coin in finance charges on that unsecured debt. More than what you would earn in any savings or money market account. So it's really NOT taking care of yourself.

@IndyPoolPlayer I disagree, I just had a talk with my current contract project, and I may lose that job at the end of the month. So if I overpay these loans, what will I use to pay the mortgage next month?

[IndyPoolPlayer]

We would appreciate it if you're seeking advice here that we get the whole picture and not just enough to get what you want to hear. With that said, since you're pending unemployment you may not get any new 0% credit or consolidation loans. Since you say you've already depleted your savings - you're looking at financial defense and depending on your state you may not get UI as a contractor (some states consider contractor the same as temporaries). Keep a roof over your head, the lights on, and food in the pantry. The rest can go to h3ll until you get another gig or start a W2 job.

[snarf]

Thanks @IndyPoolPlayer . 
I thought enough of the picture was evident when I stated my savings was depleted. Which would cover unemployment periods. 

[hdporter]

snarf ... looks like you haven't checked in since the Jan 1 exchange.  I'll belatedly comment on your original post since you're a long-time member and likely to be back ...

 

I grasp looking to save interest expense where you can, but keep a broad perspective:  This interest accrual on this debt is about $60/mo currently.  Over the full life of the loan, as the balances are gradually repaid, your average monthly interest expense is $30/mo.

 

In the scheme of things, that's a relatively modest surcharge to pay in exchange for the security extended by an installment loan vs the uncertainty inherent in a 0% promotional revolving offer.  Where it isn't the plan to pay off a promotional rate balance during the term of the offer, you face the possibility (even if small) that when the promotion ends, you can't find an equivalent offer to roll into and may be stuck playing 10%+, or even 20% -- with much regret in hindsight.

 

I periodically take advantage of 0% credit card offers to inexpensively finance large purchases for which I'd rather not liquidate savings.  Most of the time, I look to pay down the balance within the offer term.  If I want to finance something that a short-term promotional offer can't accommodate, I'll likely look for a competitive installment loan.  (Currently in repayment on such a 3-year 6% APR installment.)

 

Considering additional details that you've added in the thread, I strongly recommend that you sit pat, pleased that you're carrying the installment loans at reasonably attractive rates.