Originally Posted By: ZeeOSix
My "0% credit card" is achieved by paying it off every month before any interest accrues.
This.
My "0% credit card" is achieved by paying it off every month before any interest accrues.
This.
0% credit cards
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OVERKILL
$100 Site Donor 2021
This may be a silly question, but if you knew you were going to accrue 20K in debt that you were going to be unable to pay off in a timely fashion, why would you put it on a credit card of all things? A small LOC at a much, MUCH lower rate would seem like a far wiser idea, no?
Originally Posted By: OVERKILL
This may be a silly question, but if you knew you were going to accrue 20K in debt that you were going to be unable to pay off in a timely fashion, why would you put it on a credit card of all things? A small LOC at a much, MUCH lower rate would seem like a far wiser idea, no?
Because if you have no intention of paying it doesn't matter. They call this an undocumented loan!
This may be a silly question, but if you knew you were going to accrue 20K in debt that you were going to be unable to pay off in a timely fashion, why would you put it on a credit card of all things? A small LOC at a much, MUCH lower rate would seem like a far wiser idea, no?
Because if you have no intention of paying it doesn't matter. They call this an undocumented loan!
One of the main traits of this excellent site is the high level of bigotry: intolerance toward those who hold different opinions from oneself. Unless I missed it, I don't recall Grampi complaining about his credit card dept. He simply was asking advice to best pay it off. I don't agree with his ways, but that is his business and his choice. Weddings and funerals are both shams in my opinion, but I don't give a rat's [censored] what others choose to do.
I had hoped that some of this would have subsided since we lost our input from Iowa. Apparently not.
I had hoped that some of this would have subsided since we lost our input from Iowa. Apparently not.
Very few Americans have $20,000 cash to pay for those 2 weddings.
Of course he'll find a way to pay for it and have a special day for both daughters.
Of course he'll find a way to pay for it and have a special day for both daughters.
Originally Posted By: OVERKILL
This may be a silly question, but if you knew you were going to accrue 20K in debt that you were going to be unable to pay off in a timely fashion, why would you put it on a credit card of all things? A small LOC at a much, MUCH lower rate would seem like a far wiser idea, no?
We didn't borrow $20K, we borrowed $10K...the other $10K we had in cash...
This may be a silly question, but if you knew you were going to accrue 20K in debt that you were going to be unable to pay off in a timely fashion, why would you put it on a credit card of all things? A small LOC at a much, MUCH lower rate would seem like a far wiser idea, no?
We didn't borrow $20K, we borrowed $10K...the other $10K we had in cash...
Originally Posted By: JohnnyJohnson
Originally Posted By: OVERKILL
This may be a silly question, but if you knew you were going to accrue 20K in debt that you were going to be unable to pay off in a timely fashion, why would you put it on a credit card of all things? A small LOC at a much, MUCH lower rate would seem like a far wiser idea, no?
Because if you have no intention of paying it doesn't matter. They call this an undocumented loan!
I don't know who you're referring to, but I NEVER take loans I don't intend to pay back....
Originally Posted By: OVERKILL
This may be a silly question, but if you knew you were going to accrue 20K in debt that you were going to be unable to pay off in a timely fashion, why would you put it on a credit card of all things? A small LOC at a much, MUCH lower rate would seem like a far wiser idea, no?
Because if you have no intention of paying it doesn't matter. They call this an undocumented loan!
I don't know who you're referring to, but I NEVER take loans I don't intend to pay back....
OVERKILL
$100 Site Donor 2021
Originally Posted By: grampi
Originally Posted By: OVERKILL
This may be a silly question, but if you knew you were going to accrue 20K in debt that you were going to be unable to pay off in a timely fashion, why would you put it on a credit card of all things? A small LOC at a much, MUCH lower rate would seem like a far wiser idea, no?
We didn't borrow $20K, we borrowed $10K...the other $10K we had in cash...
OK, then the same logic applies. Why not do a small 10K line of credit at the onset? I don't know what your banking setup is like, but I can apply for one of those right through my online banking portal and the interest rate is around 2.6%.
I'm not coming down on you for borrowing money, I just think it odd you did it on a credit card when it seems you knew that there was going to be an extended payback schedule. In that type of scenario, a plan for borrowing at a low interest rate makes far more sense.
Originally Posted By: OVERKILL
This may be a silly question, but if you knew you were going to accrue 20K in debt that you were going to be unable to pay off in a timely fashion, why would you put it on a credit card of all things? A small LOC at a much, MUCH lower rate would seem like a far wiser idea, no?
We didn't borrow $20K, we borrowed $10K...the other $10K we had in cash...
OK, then the same logic applies. Why not do a small 10K line of credit at the onset? I don't know what your banking setup is like, but I can apply for one of those right through my online banking portal and the interest rate is around 2.6%.
I'm not coming down on you for borrowing money, I just think it odd you did it on a credit card when it seems you knew that there was going to be an extended payback schedule. In that type of scenario, a plan for borrowing at a low interest rate makes far more sense.
Last edited:
Originally Posted By: doitmyself
One of the main traits of this excellent site is the high level of bigotry: intolerance toward those who hold different opinions from oneself. Unless I missed it, I don't recall Grampi complaining about his credit card dept. He simply was asking advice to best pay it off. I don't agree with his ways, but that is his business and his choice. Weddings and funerals are both shams in my opinion, but I don't give a rat's [censored] what others choose to do.
I had hoped that some of this would have subsided since we lost our input from Iowa. Apparently not.
That's the way this site is. Ask a question about something and you get a bunch of smart aleck know-it-alls who think they have the answer to everything and then they proceed to rake you over the coals...funny thing is, I'd put my financial status up against any of these know-it-alls and I would bet that I'm either currently in better shape than they are, or I will be in better shape than they are in the very near future...
One of the main traits of this excellent site is the high level of bigotry: intolerance toward those who hold different opinions from oneself. Unless I missed it, I don't recall Grampi complaining about his credit card dept. He simply was asking advice to best pay it off. I don't agree with his ways, but that is his business and his choice. Weddings and funerals are both shams in my opinion, but I don't give a rat's [censored] what others choose to do.
I had hoped that some of this would have subsided since we lost our input from Iowa. Apparently not.
That's the way this site is. Ask a question about something and you get a bunch of smart aleck know-it-alls who think they have the answer to everything and then they proceed to rake you over the coals...funny thing is, I'd put my financial status up against any of these know-it-alls and I would bet that I'm either currently in better shape than they are, or I will be in better shape than they are in the very near future...
Originally Posted By: OVERKILL
Originally Posted By: grampi
Originally Posted By: OVERKILL
This may be a silly question, but if you knew you were going to accrue 20K in debt that you were going to be unable to pay off in a timely fashion, why would you put it on a credit card of all things? A small LOC at a much, MUCH lower rate would seem like a far wiser idea, no?
We didn't borrow $20K, we borrowed $10K...the other $10K we had in cash...
OK, then the same logic applies. Why not do a small 10K line of credit at the onset? I don't know what your banking setup is like, but I can apply for one of those right through my online banking portal and the interest rate is around 2.6%.
I'm not coming down on you for borrowing money, I just think it odd you did it on a credit card when it seems you knew that there was going to be an extended payback schedule. In that type of scenario, a plan for borrowing at a low interest rate makes far more sense.
I didn't go another route because I didn't know how much we would need...will I end up paying more in interest, yes, but I knew that going in...
Originally Posted By: grampi
Originally Posted By: OVERKILL
This may be a silly question, but if you knew you were going to accrue 20K in debt that you were going to be unable to pay off in a timely fashion, why would you put it on a credit card of all things? A small LOC at a much, MUCH lower rate would seem like a far wiser idea, no?
We didn't borrow $20K, we borrowed $10K...the other $10K we had in cash...
OK, then the same logic applies. Why not do a small 10K line of credit at the onset? I don't know what your banking setup is like, but I can apply for one of those right through my online banking portal and the interest rate is around 2.6%.
I'm not coming down on you for borrowing money, I just think it odd you did it on a credit card when it seems you knew that there was going to be an extended payback schedule. In that type of scenario, a plan for borrowing at a low interest rate makes far more sense.
I didn't go another route because I didn't know how much we would need...will I end up paying more in interest, yes, but I knew that going in...
OVERKILL
$100 Site Donor 2021
Originally Posted By: grampi
Originally Posted By: OVERKILL
Originally Posted By: grampi
Originally Posted By: OVERKILL
This may be a silly question, but if you knew you were going to accrue 20K in debt that you were going to be unable to pay off in a timely fashion, why would you put it on a credit card of all things? A small LOC at a much, MUCH lower rate would seem like a far wiser idea, no?
We didn't borrow $20K, we borrowed $10K...the other $10K we had in cash...
OK, then the same logic applies. Why not do a small 10K line of credit at the onset? I don't know what your banking setup is like, but I can apply for one of those right through my online banking portal and the interest rate is around 2.6%.
I'm not coming down on you for borrowing money, I just think it odd you did it on a credit card when it seems you knew that there was going to be an extended payback schedule. In that type of scenario, a plan for borrowing at a low interest rate makes far more sense.
I didn't go another route because I didn't know how much we would need...will I end up paying more in interest, yes, but I knew that going in...
That doesn't really change the merit of the suggestion though
Having a 10-20K line of credit at a low interest rate doesn't mean you have to use all of it.
I know hindsight is 20/20 in these types of scenarios of course.
Originally Posted By: OVERKILL
Originally Posted By: grampi
Originally Posted By: OVERKILL
This may be a silly question, but if you knew you were going to accrue 20K in debt that you were going to be unable to pay off in a timely fashion, why would you put it on a credit card of all things? A small LOC at a much, MUCH lower rate would seem like a far wiser idea, no?
We didn't borrow $20K, we borrowed $10K...the other $10K we had in cash...
OK, then the same logic applies. Why not do a small 10K line of credit at the onset? I don't know what your banking setup is like, but I can apply for one of those right through my online banking portal and the interest rate is around 2.6%.
I'm not coming down on you for borrowing money, I just think it odd you did it on a credit card when it seems you knew that there was going to be an extended payback schedule. In that type of scenario, a plan for borrowing at a low interest rate makes far more sense.
I didn't go another route because I didn't know how much we would need...will I end up paying more in interest, yes, but I knew that going in...
That doesn't really change the merit of the suggestion though
Having a 10-20K line of credit at a low interest rate doesn't mean you have to use all of it.
I know hindsight is 20/20 in these types of scenarios of course.
Originally Posted By: OVERKILL
That doesn't really change the merit of the suggestion though
Having a 10-20K line of credit at a low interest rate doesn't mean you have to use all of it.
I know hindsight is 20/20 in these types of scenarios of course.
Though the interest rate on a line of credit loan would've been lower, I doubt it would have been a lot lower than my CC rate...
That doesn't really change the merit of the suggestion though
Having a 10-20K line of credit at a low interest rate doesn't mean you have to use all of it.
I know hindsight is 20/20 in these types of scenarios of course.
Though the interest rate on a line of credit loan would've been lower, I doubt it would have been a lot lower than my CC rate...
I racked up the credit card bill when i was in college, i kept signing up for the promotional 0% and 0 transfer fee credit cards until it was paid off. Just make sure there are no balance transfer fees and pay off or transfer before the promo time expires, and do not use the card to buy stuff and do not be late with a payment otherwise you’ll have to deal with all kinds of other rules and rates.
I've used 0% interest free credit cards for purchases and balance transfers a few times. Never when there was a balance transfer fee though.
3% for 21 months is pretty low though. Put the $500 or $600 a month into a bond like investment, maybe munis and you'll have more than $10k at the end to pay off the balance.
3% for 21 months is pretty low though. Put the $500 or $600 a month into a bond like investment, maybe munis and you'll have more than $10k at the end to pay off the balance.
OVERKILL
$100 Site Donor 2021
Originally Posted By: grampi
Originally Posted By: OVERKILL
That doesn't really change the merit of the suggestion though
Having a 10-20K line of credit at a low interest rate doesn't mean you have to use all of it.
I know hindsight is 20/20 in these types of scenarios of course.
Though the interest rate on a line of credit loan would've been lower, I doubt it would have been a lot lower than my CC rate...
That sucks. As I mentioned earlier, our rates are around the low to mid 2% mark.
Originally Posted By: OVERKILL
That doesn't really change the merit of the suggestion though
Having a 10-20K line of credit at a low interest rate doesn't mean you have to use all of it.
I know hindsight is 20/20 in these types of scenarios of course.
Though the interest rate on a line of credit loan would've been lower, I doubt it would have been a lot lower than my CC rate...
That sucks. As I mentioned earlier, our rates are around the low to mid 2% mark.
Originally Posted By: grampi
Originally Posted By: OVERKILL
That doesn't really change the merit of the suggestion though
Having a 10-20K line of credit at a low interest rate doesn't mean you have to use all of it.
I know hindsight is 20/20 in these types of scenarios of course.
Though the interest rate on a line of credit loan would've been lower, I doubt it would have been a lot lower than my CC rate...
I think he was referring to a home equity line of credit. Those are usually pretty low maybe 3.25-4.5% and it sounds like you have some good equity in your home. Those don't usually cost anything to open and the interest rate only kicks in once you use it. But a 0% for 21 months with a 3% balance transfer fee is equivalent to a 1.7% interest rate so that's going to be even better than a line of credit and there's no question that it's the way to go. I used to use them all the time. Back in the day, they would even have super low transfer rates of either 1% or just a flat rate of $50 or even free. But that was a long while ago and they stopped giving out free money like that.
Originally Posted By: OVERKILL
That doesn't really change the merit of the suggestion though
Having a 10-20K line of credit at a low interest rate doesn't mean you have to use all of it.
I know hindsight is 20/20 in these types of scenarios of course.
Though the interest rate on a line of credit loan would've been lower, I doubt it would have been a lot lower than my CC rate...
I think he was referring to a home equity line of credit. Those are usually pretty low maybe 3.25-4.5% and it sounds like you have some good equity in your home. Those don't usually cost anything to open and the interest rate only kicks in once you use it. But a 0% for 21 months with a 3% balance transfer fee is equivalent to a 1.7% interest rate so that's going to be even better than a line of credit and there's no question that it's the way to go. I used to use them all the time. Back in the day, they would even have super low transfer rates of either 1% or just a flat rate of $50 or even free. But that was a long while ago and they stopped giving out free money like that.
Originally Posted By: doitmyself
One of the main traits of this excellent site is the high level of bigotry: intolerance toward those who hold different opinions from oneself. Unless I missed it, I don't recall Grampi complaining about his credit card dept. He simply was asking advice to best pay it off. I don't agree with his ways, but that is his business and his choice. Weddings and funerals are both shams in my opinion, but I don't give a rat's [censored] what others choose to do.
I had hoped that some of this would have subsided since we lost our input from Iowa. Apparently not.
LOL, have a read of the retirment thread where grampi is ripping it into me for "obviously not saving for my retirement".
Something about pots and kettles comes to mind...or splinters and logs...Alanis Morriset songs ???
It's just rare that the turnaround comes in such a small timeframe.
One of the main traits of this excellent site is the high level of bigotry: intolerance toward those who hold different opinions from oneself. Unless I missed it, I don't recall Grampi complaining about his credit card dept. He simply was asking advice to best pay it off. I don't agree with his ways, but that is his business and his choice. Weddings and funerals are both shams in my opinion, but I don't give a rat's [censored] what others choose to do.
I had hoped that some of this would have subsided since we lost our input from Iowa. Apparently not.
LOL, have a read of the retirment thread where grampi is ripping it into me for "obviously not saving for my retirement".
Something about pots and kettles comes to mind...or splinters and logs...Alanis Morriset songs ???
It's just rare that the turnaround comes in such a small timeframe.
JHZR2
Staff member
Originally Posted By: grampi
Originally Posted By: JHZR2
Why not just pay it?
Your plan is only valid if you're not going to aggressively pay it off, in which case you'll end up with this one reverting to some rate. Why not pay it off on the current card, and live within your means?
Do the math, how much will you actually save?
If I pay on my current card @ $500 a month, it would take me just under two years and I would pay roughly $1000 in interest. If I used a 0% card and paid the same amount each month, it would get paid off a couple months earlier, and I would have to pay the 3% balance transfer fee, which would be $300...so I would save $700 by using a 0% card vs just paying off the card I have now...I don't know if it's really worth opening up another line of credit to save $700...
That was kind of my point. I wasnt aware of how much you were able to pay. Is it worth opening a line to save $700? Probably. The flip side could have been that you were only able to pay $100 or $200/month, and would have gotten hit with a 3-4% balance transfer fee, as well as a possible reversion to a HIGHER interest rate, since often these cards are teasers for then higher rates, and then sustained repayment at a higher rate vs just trying to be aggressive on the front end. You are being aggressive for the terms to minimize realized interest. That's great.
Id personally open a card to save $700. That's a non-trivial savings. Key is to actually commit to making those payments, not letting them slip, and actually realizing the savings...
Originally Posted By: grampi
Originally Posted By: Mr Nice
Very few Americans have $20,000 cash to pay for those 2 weddings.
Of course he'll find a way to pay for it and have a special day for both daughters.
Thank you Mr Nice...finally, someone who gets it...
Originally Posted By: grampi
I would bet that I'm either currently in better shape than they are, or I will be in better shape than they are in the very near future...
Be careful. Not having $20k is not someone who is claiming that they are in better shape than whomever the smart alecs are that youre speaking of. In the big scheme of things, $20k should not be much money on anybody's accounting, given the price of cars and homes, anyplace in the country. I can get not having it if youre starting out. But if you are far along and dont have that money, smart savings plan, smart use of debt, or whatever, youre not particularly well off, and shouldnt be commenting about others making comments. You should be looking at living in your means. I assume youre near retirement. What happens when you need a $7000 furnace, or a $20k+ car, or whatever else? What about as the years go by and your pensions and savings erode? Just be careful about all this stuff, that's all.
Originally Posted By: JHZR2
Why not just pay it?
Your plan is only valid if you're not going to aggressively pay it off, in which case you'll end up with this one reverting to some rate. Why not pay it off on the current card, and live within your means?
Do the math, how much will you actually save?
If I pay on my current card @ $500 a month, it would take me just under two years and I would pay roughly $1000 in interest. If I used a 0% card and paid the same amount each month, it would get paid off a couple months earlier, and I would have to pay the 3% balance transfer fee, which would be $300...so I would save $700 by using a 0% card vs just paying off the card I have now...I don't know if it's really worth opening up another line of credit to save $700...
That was kind of my point. I wasnt aware of how much you were able to pay. Is it worth opening a line to save $700? Probably. The flip side could have been that you were only able to pay $100 or $200/month, and would have gotten hit with a 3-4% balance transfer fee, as well as a possible reversion to a HIGHER interest rate, since often these cards are teasers for then higher rates, and then sustained repayment at a higher rate vs just trying to be aggressive on the front end. You are being aggressive for the terms to minimize realized interest. That's great.
Id personally open a card to save $700. That's a non-trivial savings. Key is to actually commit to making those payments, not letting them slip, and actually realizing the savings...
Originally Posted By: grampi
Originally Posted By: Mr Nice
Very few Americans have $20,000 cash to pay for those 2 weddings.
Of course he'll find a way to pay for it and have a special day for both daughters.
Thank you Mr Nice...finally, someone who gets it...
Originally Posted By: grampi
I would bet that I'm either currently in better shape than they are, or I will be in better shape than they are in the very near future...
Be careful. Not having $20k is not someone who is claiming that they are in better shape than whomever the smart alecs are that youre speaking of. In the big scheme of things, $20k should not be much money on anybody's accounting, given the price of cars and homes, anyplace in the country. I can get not having it if youre starting out. But if you are far along and dont have that money, smart savings plan, smart use of debt, or whatever, youre not particularly well off, and shouldnt be commenting about others making comments. You should be looking at living in your means. I assume youre near retirement. What happens when you need a $7000 furnace, or a $20k+ car, or whatever else? What about as the years go by and your pensions and savings erode? Just be careful about all this stuff, that's all.
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