Someone help with the math please?

[2FixMyCredit]

It should be simple I know but I keep coming up with a different answer, basically I feel like a moron so I need help please

On a 1400 balance would it be cheaper to pay 22.9% interest over 6-12 months or would it be cheaper to transfer the balance to a 16.9% interest with a 3% fee?

[VirusCredit13]

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@2FixMyCredit wrote:

It should be simple I know but I keep coming up with a different answer, basically I feel like a moron so I need help please

On a 1400 balance would it be cheaper to pay 22.9% interest over 6-12 months or would it be cheaper to transfer the balance to a 16.9% interest with a 3% fee?

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Depends on when your going to pay it all off by, and how much you pay monthly.

Over 6 months 22.9 will most likely be cheaper.

Over 12 months 16.9 will most likely be cheaper.

Not sure where the middle point will be where that BT becomes worth it, would depend on how much you actualy pay each month.

[compassion101]

Assuming you make the minimum payments (~28) you would pay about 159 in interest in the higher one over 6 months. With the transfer you'd pay around 117 in interest and 42 in fees, so 159 also.

Over 12 months you'd pay 317 interest, or 229 plus 42 fees for a total of 271. So a slight savings.

Any better options? 200-300 is alot of interest to pay for just $1400

[milkshakes]

possibly app for a Slate or Discover with 0% BT fee or no interest for 15 months?

[user5387]

16.9% is 1.41% a month, and 22.9% is 1.91% a month.

If you amortize the 3% fee over six months, and add it to the 1.41%, then it would be 1.91% for those six months.

So six months appears to be the breakeven point, if you are paying a certain percentage every month of a fixed amount.

But it really depends on what sort of payments you make when.

[Kenny]

Loan Comparison

Loan Loan #1	Total Principle  $1,400	Total Percentage 22.90%	Months Payment 6	Payment $249	Interest Paid $95	Total Amt Paid $1,495
	$1,400	22.90%	7	$216	$109	$1,509
	$1,400	22.90%	8	$190	$123	$1,523
	$1,400	22.90%	9	$171	$137	$1,537
	$1,400	22.90%	10	$155	$151	$1,551
	$1,400	22.90%	11	$142	$165	$1,565
	$1,400	22.90%	12	$132	$180	$1,580
Loan #2	$1,442	16.90%	6	$252	$72	$1,514
	$1,442	16.90%	7	$218	$82	$1,524
	$1,442	16.90%	8	$192	$93	$1,535
	$1,442	16.90%	9	$172	$103	$1,545
	$1,442	16.90%	10	$156	$114	$1,556
	$1,442	16.90%	11	$142	$125	$1,567
	$1,442	16.90%	12	$131	$135	$1,577

Is this correct? I plugged it into numbers app.

If this is true --  I don't know that it even matters at all to do a BT because 22.99 vs 19.99 (effectively) doesn't make very much difference at all.