A Raindrop – 0% APR for 12 Months
I made a decision in the month of October when the credit union that I have my auto loan sent me a letter. It was a card for 0% APR for a 12 month period. After looking at some of the interest rates of my other cards, I knew I had to do something that a lot of people consider drastic. I accepted the card and began transferring some of my balances to it.
Now, a lot of you are probably thinking that I’m desperate. You bet I am. I am unemployed, I needed to stall, and I was just starting to feel like I was able to float in the water in which I jumped. However, that was NOT the line of thought that I was having when I accepted this. I saw that 0% interest for twelve months was a great idea for me. It meant that I would be able to transfer two, perhaps three of my card balances THAT HAVE HUGE APR RATES to this new card and say sayonara to them. And when the twelve months was over, the APR would only be 12%.
So that is exactly what I did. I kissed my Best Buy Store card (27.9% APR) and my Capital One Credit Card (21.9% APR) goodbye and made sure it was final.
Yup, they are bye bye. (To be honest, that’s just a picture someone else took, I forgot to do the same when I cut mine up). While I was also transferring funds, I transferred about a third of my Chase card to this as well. This was to make sure that wouldn’t just be making interest payments on the the Chase card, I could actually make a dent in that one too. Needless to say, I know this might hurt the credit report right now, but it was probably the best choice and decision that I made. Hindsight being 20/20, I did not know I would be without a job, but man am I glad I was thinking of the future for me even at the beginning of my get out of debt decision.
The only con: My credit report might be hurt for this. But honestly, I’m already so much in debt, missing a payment is more of a problem in my eyes, and being unemployed, that might have happened. So it’s a minor blip.
The benefits: I have eliminated two high APR credit cards. I have a more reliable source of credit (my credit union won’t be going anywhere), and I can now begin to knock out even more of my debt just by paying minimum monthly payments on it every month. No interest made, just debt going away. Now yes there were some fees for it, but those fees are minimal compared to the accrued interest that would be charged every month until these cards were gone.
All I can say is I’m happy with my decision and honestly think it was probably the most sound for me at this time.
Have you ever transferred a credit card balance to a new card? How did that work for you? Got any tips?
Count those raindrops!