Jan
07
What 0% cc should I double up on payments to reduce debt?
Posted ByI just recently transferred two of my credit cards into two 0% for 15 months each. They both have a $4,000.00 balance. Should I double up payments on both or do one at a time?
5 Comments
January 7th, 2010 at 8:35 am
Double up on both. If you can find a way to consolidate the two, cancel one, and then make one payment, you’ll reduce the debt even more. If you own a house, consider a Home Equity Loan (not a Line of Credit – the actual fixed-rate loan.) The interest is much lower and you’ll have tax-deductions.
Whatever you do – cut up BOTH credit cards immediately and stop using them.
January 7th, 2010 at 9:08 am
Wow, they just showed this 0% balance transfer on the local news the other night and it is not a good idea…………They said read the fine print because in 6 months or more the 0% becomes 19.99% to finish paying the balance……….Remember if is sounds too good to be true, it usually is……….So to answer your question, pay it off ASAP………..iT MAY EVEN BE CHEAPER TO TAKE OUT A LOAN AT THIS TIME AT THE BANK.. IN ORDER TO PAY IT OFF..GOOD LUCK WITH THIS ONE
January 7th, 2010 at 9:09 am
Frankly, it does not matter during the 15 months. Just make sure that you pay more than the minimum on both. If you double up on one, and only pay the minimum on the other, then you are in danger of being labeled a slow pay.
Credit cards that receive only the minimum payment for 6 consecutive months can be labeled slow pay, and the creditor will frequently raise the interest rate substantially as a result.
If you think you can pay one of them off in full within the 15 month period, then you should consider doubling up on that one while paying about $10-20 over the minimum payment on the other.
Good luck! 0% is a wonderful thing. Make sure that you read all disclosures. Discover requires 2 purchases a month to maintain 0% on their offer.
January 7th, 2010 at 9:36 am
Additional word to the wise. Most of the 0% offers that are around these days carry a requirement that you stay current on ALL of your payments. If you are late making any payment for any debt, and it is reported, then you will lose your 0% and the interest rate will skyrocket.
So, make sure you are taking care of all of your accounts before you start to double up on these credit card accounts.
January 7th, 2010 at 10:18 am
double up on both. If you cant pay of the balance within the 15 month then pay the one that has the highest interest after the 0% expires.