Debt Payoff with 0% APR - Need help with the math

[pennccrn]

HI all: I wanted to see if someone could help me out with the math. Currently, I have a Discover It card and a Citi Diamond with a 0% APR until November 2014, carrying a balance with a combined total 7K and a local CU credit card with a 3K balance with an fixed APR of 11.9%. I'm currently putting about $600/month towards the 0% cards trying to get them paid off before the APR offer expires. My question to the group, is this the best way to go about repaying this debt or should I focus on paying off the card with the fixed rate first. I guess I'm looking to save the most on interest charges, not really seeking credit since I'm pretty happy with the credit products I have now.

[PCMedic]

I personally would knock off the CU card fist as you are currently paying interest on that 3K balance. Doing that (and not using that card) at $600 a month would have it paid off 3/14. You do not specify how the 7K is split between the other two cards so based on the info you provided I would then look at the two remaining cards to see what the interest rate will revert to at the end of the intro period in 11/14 and begin dumping the $600 a month on to the one that will revert to the higher rate.

If you are willing to provide a little more info may be able to give a better answer.

[sccredit]

Here's the problem:

You basically have 12 months at 0%

CC Debt Debt = $10,000

$600 a month x 12 mos = $7,200

Leaves you with about $2,800 at the end of 12 months (or roughly your CU card).  What is your plan with that?

[pennccrn]

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@PCMedic wrote:

You do not specify how the 7K is split between the other two cards so based on the info you provided I would then look at the two remaining cards to see what the interest rate will revert to at the end of the intro period in 11/14 and begin dumping the $600 a month on to the one that will revert to the higher rate.

If you are willing to provide a little more info may be able to give a better answer.

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@PCMedic, thanks for your input. Just to clarify both of the 0% offers expire at the same time in November 2014. The split is 5K on Discover with an APR of 12.99, and the remaining 2K on Citi with an APR of 20%. I'd obviously be focused paying down the Citi Card first.

[pennccrn]

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@sccredit wrote:

Here's the problem:

You basically have 12 months at 0%

CC Debt Debt = $10,000

$600 a month x 12 mos = $7,200

Leaves you with about $2,800 at the end of 12 months (or roughly your CU card).  What is your plan with that?

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@sccredit - There in lies my problem. Anyway I get around it, I'm going to have to pay interest on that extra $2800. I was just investgating to see if I could save money one way or another.  Appreciate your help !

[MoreRewards]

If you can allocate $660 for the next 5 months
Pay $600 a month on CU card it will be paid in 5 months (March pay).
Pay $35 next 5 months on DS ($175 in payments) you will have $4825 balance in March
Pay $25 next 5 months on Citi ($125 in payments) you will have $1875 balance in March

In April
Pay $268 the next 7 months (April-Oct) on Citi & it will be paid off before interest hitd
Pay $332 the next 7 months on DS ($2325 in payments) your balance will be $2676 on DS when you interest starts. Pay $600 it should pay off after about 4 and a half months.