topic Re: Well I screwed up.... in General Credit Topics

Well I screwed up....

silly34 — Sat, 06 Sep 2008 14:14:06 GMT

I have an account with Citi Financial for a Rooms to Go purchase. It was a promo offer for 3 years no interest/no payments. I paid a good portion of it down but not all and the promo expired so the APR went to 24.99%. I called to try and lower it but was unable so I balance transfered it to another account for 3.99% till it was paid off (3%, fee based on amount transfered $2000).

Here is where I screwed up. I had already balanced transfered a large amount to the same account for 2.99% in the amount of $10,000. What I hadn't realized when I had done the transfer for the $2,000 was all of the payments I make will go to the lower APR first until it is paid. In the mean time that $2,000 is going to be accruing 3.99% of interest until the $10k is paid.

Once this error was realized I called them up and asked to have the $2k moved to another promo that was 0% APR for 6 months (I can have it paid off by then). She came back and said I would know in 5-7 days if they would/could move it. Kinda odd but we will see. In any case if they don't I think I can just BT the whole $12k and then BT it back after a month. Granted I will incur fee's but only $400 ($199 max both ways) worth which is better than racking up 3.99% over several years.

The game continues...

Re: Well I screwed up....

Anonymous — Sat, 06 Sep 2008 18:22:31 GMT

Without trying to be critical-

Start paying this stuff off- just moving thousands of dollars of debt around is just costing you money. You need to start tracking your effective APR's.

Re: Well I screwed up....

silly34 — Sat, 06 Sep 2008 19:08:51 GMT

I thought that was the point of my moving away from a 24.99% APR? Was I not clear on my intentions? I was tired of paying for a year now $60 payment while only $20 was going to principal. I don't make much money so I am having to make the system work for me (when I can). B.

Re: Well I screwed up....

Anonymous — Sat, 06 Sep 2008 22:32:07 GMT

$400 ($199 max fee twice) covers 4 and a half years of 3.99% interest on $2,000. I say don't bother, it's not worth the transfer fee or the hassle.

And the difference between 2.99% and 3.99% on $2,000 over 4 years is less than a hundred bucks. Why not concentrate on paying it down? 3.99% for life is an excellent rate for unsecured debt.

Re: Well I screwed up....

silly34 — Sun, 07 Sep 2008 14:11:27 GMT

Oh I thought it was waaay more than that (was led to believe). Then no sweat :0) If they do move it over the 0% 6mo. that would be good too since I have to have it paid in 6mo. (light a larger fire under my arse).

Thanks!

Re: Well I screwed up....

wmarat — Sun, 07 Sep 2008 18:34:10 GMT

Timothy wrote:
Without trying to be critical-

Start paying this stuff off- just moving thousands of dollars of debt around is just costing you money. You need to start tracking your effective APR's.

Very good advice.