Two credit cards-$550/$600 monthly budget
New here so forgive me if this has been asked and addressed before.
So, I have only 2 credit cards! Yay for me! Went through debt consolidation years back and worked hard to build up my credit!
Anyway... First card I just got--- 0% for 21 months Second card have had for about 2 years- 26.24%
I just transferred $6250 to pay off the larger card and take advantage of the 0%. At 21 months, that is about $315 a month to pay off in 21 months.
Here's where I'm scratching my head. If I pay my full budget amount (anywhere between $500 and $600 a month depending) I can pay off in about 1/2 the time, then focus on that amount to pay off the older interest card.
Or.....do I pay the $315 (give or take a little on varying months) to the 0% and then pay whatever else I can swing ( $200-$300) to the larger card? Can't seem to find a good credit calculator with amortization schedule to show what I could save using that method vs just hitting the 0% as fast as I can.
FYI- I DO NOT charge on the interest card what I cannot pay immediately! I charge gas, grocery, then add those charges up and pay it like a day later. It is a cash back card so I build that up and use that for Christmas! I'm pretty damn good at saving a buck! LOL If I do charge anything, it is very small and use this little extra stash cash I have. Otherwise, I try to keep new charges off this card until I can bring the balance down to under $1000 so interest charged doesn't give me a stomach ache if I have to use it!
Thanks!!!
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i understand the 0% card, but from reading all this, It would appear that you are carrying a roll over balance on both cards each month. that means interest is still being charged on the roll over balance of the original card. if total dollar savings is your goal you want to pay OFF the interest bearing card first. this means stop using it, until you base line $0.00, reward points make you feel good, but sorry, you are NOT SAVING A BUCK as long as you are paying interest. you are paying 26%apr for 1-2% cash back?
Personally, i would recommend the following, which is the method i used in a similar situation.
1. divide your 0% card balance by 20 months and set that monthly payment to AutoPay. that line of credit is free money now, so drag it out the full term.
2. stop using the interest bearing card immediately and put the rest of your debt payoff budget, and your current points balance towards payoff until it reaches $0.00. not $1,000. ZERO. then you can start using the card again for basic needs, and do a weekly balance payoff to prevent interest charges. build up your points when their dollar value is greater than your interest fees.
3. If your 20 month 0% card pays off before your interest card, request another balance transfer at 0% terms and do it all again. just like I did, Do not stop until your reach absolute $0.00 then you can start managing your credit, instead of managing your debt. it's a good feeling, trust me. -
Finally someone answers LOL! Thanks! To hear it from another real person helps my thought process! I actually just negotiated with Discover for 0% on any NEW PURCHASES for 112 months. Meaning, my week to week that I DO PAY IN FULL (gas, groceries, anything small; I tally the week and pay that amount or over) is no 0%. I'll readjust the other card to pay like you said, the minimum to pay within the months left. The rest I'll hit to the discover. Or I'll play the lottery... yeah no..that's even a bigger waste! Thanks for the insight! I paid my debt off completely one time before (car and all!) and you're right...BEST DAMN FEELING EVER!
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