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.