APR balance transfers- Does it benefit you financially?
Fri, 01/08/2010 22:07
I'm seeking advice in reference to transferring my 3 credit card balances to one card that has a 12 month introductory 0% APR/Balance Transfers (11%-19% after the 12 months). The card is the Cash Rewards Visa?? Platinum Card. "https://applications.usbank.com/oad/catalog/learnMore.controller? productId=15&sourceCode=76024"
I have about $7500 in CC debt, and the three cards are all but maxed out. The interest rates are 20%, 15%, and 8% respectively for my three cards, so even the post-introductory rate will be lower than what I have now.
I also want to purchase a home in the next 12 months, so I'm worried about my credit score for both the high debt/credit ratio and opening a new card.
According to an online calculator I could save about $1800 in interest over 12 months, since there is no BT fee if transferred in the application process. I really don't want to open a new card, but it looks like I could save a ton of cash. Is this a good idea?
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.