topic Re: Need Help With Debt Strategy in Credit Cards

Need Help With Debt Strategy

Anonymous — Wed, 30 May 2018 05:30:45 GMT

I can be slow on things I have never experienced before. I'm not buried in debt.

I have a Comenity BT promo coming to an end in September 2018. I have a second offer for a Comenity BT ending on June 30, 2018.

I prefer not to have two BTs with Comenity.

If I cannot pay off my BT by the end of the promo period in September will I have interest applied retroactively to the entire BT or simply to the remaining debt?

Similarly, two Blispay promos end in September and I am looking to avoid the retroactive interest charges but don't want to use a second Comenity BT.

If I will only be charged interest on my remaining balance on the first Comenity BT I can pay off the two Blispay promos before the end date.

In summary, will I only be charged interest on the remaining balance on my first Comenity BT or will I retroactively be charged for the full amount from when I did the BT if it's not paid in full?

Re: Need Help With Debt Strategy

Anonymous — Wed, 30 May 2018 06:19:56 GMT

Early in the year I bought a few toys. They were not a part of my strict monthly budget. I have enjoyed them all spring and until today.

I refuse to touch my savings unless it comes down to the last day when interest is about to be applied to a credit card. That's the game, right? Don't pay any interest.

Keeping with my daily routine, without buying anymore toys, and not dipping into my savings, I can pay either the Comenity or the Blispay in full come September. Truth be known, the Comenity promo periods have way less retroactive interest that the Comenity BT. But am I mistaken? Is the Comenity BT interest retoactively applied if you don't pay in full before the promo period ends?

Re: Need Help With Debt Strategy

pipeguy — Wed, 30 May 2018 16:30:13 GMT

Although I won't do business with Comenity, so I don't use Comenity offers, from the BT promotions I've seen from various Comenity cards, the offer is 0% balance transfer until xx/2018-19 - this means the interest is NOT retroactive from the time you took the transfer. On the other hand, Blispay is structured for no payments required for 6 months, but if NOT paid in full interest is added back in on a retroactive basis at 19.99% on the offer's promotion expiration date - these are BlisPay's standard terms, not a promotion per se, more of a feature of that card

Promotional financing through cards backed by Synchrony such as Lowes 0% for 6 months which are also offered in various forms through Walmart/Amazon/Sams club/CareCredit, etc (Synchrony backed) for various length-of-time periods will also hit you with retroactive earned interest if not paid by the closing date of the promotion. Citi-backed store-branded cards like Costco and Best Buy offer some form of promotional financing too.

The bottom line is to read and understand the terms of the offer before you accept the offer because they vary - that's the "hook" to get you interested. Used properly promotional financing is a very useful tool, but missing a deadline is an expensive lesson.

As far as your base question, pay the BlisPay bill before the due date before you pay the "expiring" BT - it'll cost you less interest.

Re: Need Help With Debt Strategy

Anonymous — Wed, 30 May 2018 06:45:34 GMT

Thanks Pipeguy. To be honest, I have only done one BT ever. It was from Blispay to Comenity.

Feeling like I played the game, I went right back and made a few promo purchases on my Blispay.

I have lost 30 pounds by buying an expensive bicycle as the spring began. Wanted it for that purpose. Bought a 55" curved 4k tv and a 12' utility trailer with Blispay.

Since I had never done a BT on a credit card I felt like if it was not paid in full I would owe a good amount of retroactive interest.

This is the first time my utility ever rose to 3%. I'm soon cancelling a CSP due to the yearly $95 fee. That's just how I roll. When building wealth you try not to touch your savings.

Re: Need Help With Debt Strategy

CreditCuriosity — Wed, 30 May 2018 14:54:31 GMT

Interest on a BT with Comenity isn't retro attactive just what your normal APR is there-after what is left on the card as pipeguy said