BT offer to pay off cards

[Anonymous]

Hi all, 

I think I'm finally getting a handle on the big issues with my finances, but I still have credit card debt that I'm looking to manage. Some of my debt was due to helping out my parents for a few months with some bills, while a bit was due to a fairly expensive car repair and service bill. The stuation compounded itself as I refuse to use a debit card (typically less insurance if compromised) and was not staying on top of things like I should have.

I wanted to get a personal loan with a 3yr term, but thanks to my fairly lucky pick of credit cards I'm having a hard time finding a loan with low enough interest rates to make it worhtwhile. However, my oldest card religiously sends me a balance transfer offer each month. I was thinking of using it to get ahead a bit, but wanted some outside opinions because my asusmptions aren't always the best. All cards I am considering doing the BT on have a * but I am including everything for a complete picture.

CC Debt:

*AMEX BCE: $2,378 / $7,000, 0% until 11/17 then 13.74%

Barclaycard Ring: $5,296 / $7,000, 8.25% (currently doing minimum)

*Cap1 Quicksilver: $1,529 / $10,000, 0% until 6/17 then 13.74%

Citibank Forward: $479 / $10,500, 12.99% (online only card, pay off statement balance every month)

Commerce Bank Visa $1,717 / $15,000, 11.99% (card with the offer, currently paying minimum)

Now, my original plan was to get a personal loan, but I would need something sub 10% to put everything into one basket, or find one with a low minimum that is roughly 12% and leave the Barclaycard alone. Between my local bank (Commerce Bank) and Alliant, the closest I can get is about 11%. This is where the balance transfer offer became a thought. The offer I have is 1.99% for 12 months with a 5% fee (or 10$, the higher of the two). I was planning on doing the BT for Cap1 now so I don't have to pay the interest next month, and then in november do the remainder of the Amex. The fee would be about $85 to do the Cap1 now. 

Another option available is I have about $1,200 in a Betterment invesment account that is earning about 4% right now. I could just clean that out, move some savings around, and pay off the Cap1 now, then wait until November and then do a BT on the Amex (probably the better option).

Regardless of what method I use (loand or BT offers), my plan post consolidation is the following:

The Amex and Cap1 are my daily use cards (amex for gas/groceries and cap1 for everything else), and will be paid off every month. The Citi remains an online only card and will continue to be paid off every month. As for the Barclay and Commerce, once they are down to a 0 balance I would probably make them my bill/emergency cards, the bills so they get a monthly charge, and emergency since they are the lowest interest of the lot.

Any comments would be nice, preferrebly helpful but I'll take whatever I can get.

[Anonymous]

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@Anonymous wrote:

Hi all, 

I think I'm finally getting a handle on the big issues with my finances, but I still have credit card debt that I'm looking to manage. Some of my debt was due to helping out my parents for a few months with some bills, while a bit was due to a fairly expensive car repair and service bill. The stuation compounded itself as I refuse to use a debit card (typically less insurance if compromised) and was not staying on top of things like I should have.

I wanted to get a personal loan with a 3yr term, but thanks to my fairly lucky pick of credit cards I'm having a hard time finding a loan with low enough interest rates to make it worhtwhile. However, my oldest card religiously sends me a balance transfer offer each month. I was thinking of using it to get ahead a bit, but wanted some outside opinions because my asusmptions aren't always the best. All cards I am considering doing the BT on have a * but I am including everything for a complete picture.

CC Debt:

*AMEX BCE: $2,378 / $7,000, 0% until 11/17 then 13.74%

Barclaycard Ring: $5,296 / $7,000, 8.25% (currently doing minimum)

*Cap1 Quicksilver: $1,529 / $10,000, 0% until 6/17 then 13.74%

Citibank Forward: $479 / $10,500, 12.99% (online only card, pay off statement balance every month)

Commerce Bank Visa $1,717 / $15,000, 11.99% (card with the offer, currently paying minimum)

Now, my original plan was to get a personal loan, but I would need something sub 10% to put everything into one basket, or find one with a low minimum that is roughly 12% and leave the Barclaycard alone. Between my local bank (Commerce Bank) and Alliant, the closest I can get is about 11%. This is where the balance transfer offer became a thought. The offer I have is 1.99% for 12 months with a 5% fee (or 10$, the higher of the two). I was planning on doing the BT for Cap1 now so I don't have to pay the interest next month, and then in november do the remainder of the Amex. The fee would be about $85 to do the Cap1 now. 

Another option available is I have about $1,200 in a Betterment invesment account that is earning about 4% right now. I could just clean that out, move some savings around, and pay off the Cap1 now, then wait until November and then do a BT on the Amex (probably the better option).

Regardless of what method I use (loand or BT offers), my plan post consolidation is the following:

The Amex and Cap1 are my daily use cards (amex for gas/groceries and cap1 for everything else), and will be paid off every month. The Citi remains an online only card and will continue to be paid off every month. As for the Barclay and Commerce, once they are down to a 0 balance I would probably make them my bill/emergency cards, the bills so they get a monthly charge, and emergency since they are the lowest interest of the lot.

Any comments would be nice, preferrebly helpful but I'll take whatever I can get.

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Take a HP on the Ring and ask for an increase.  You can type in an amount and they will counter. Do this after you get the util down on the card. I would def be paying more than the minimum on any barclays account.

You really aren't in that bad of shape here. Your rates are not that high.  But you could save some money if you can pay things off quickly just by transferring them to the ring if you get it increased. Looks like roughly 10k cc debt and overall 50k total limits.  

Have you called each issuer to see if they have any better BT offers??  I know I have personally seen several 0% recurrent offers for capital one and even moreso Citibank.  They may not have a BT offer but if you ask you may get apr reduction. I got 3.99% on purchases until next spring.  With your old forward card they certainly should be able to PC it to a double cash later on as well.  

Once you get your overall utilization down, that would be the time to get some bonus offers.  Get your high yield accounts loaded back up.  Cut back any costs you can right now. Get rid of cable tv.  Get the cheapest internet you can. Get a cell phone through redpocket. Start couponing.  Get on thepennyhoarder and see if you can find any ways to make some extra money.  I would save a loan as a last resort. 

[Anonymous]

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@Anonymous wrote:HP on the Ring and ask for an increase.  You can type in an amount and they will counter. Do this after you get the util down on the card. I would def be paying more than the minimum on any barclays account.

You really aren't in that bad of shape here. Your rates are not that high.  But you could save some money if you can pay things off quickly just by transferring them to the ring if you get it increased. Looks like roughly 10k cc debt and overall 50k total limits.  

Have you called each issuer to see if they have any better BT offers??  I know I have personally seen several 0% recurrent offers for capital one and even moreso Citibank.  They may not have a BT offer but if you ask you may get apr reduction. I got 3.99% on purchases until next spring.  With your old forward card they certainly should be able to PC it to a double cash later on as well.  

Once you get your overall utilization down, that would be the time to get some bonus offers.  Get your high yield accounts loaded back up.  Cut back any costs you can right now. Get rid of cable tv.  Get the cheapest internet you can. Get a cell phone through redpocket. Start couponing.  Get on thepennyhoarder and see if you can find any ways to make some extra money.  I would save a loan as a last resort. 

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I know many people have it much worse off than me, but I hate seeing that little amount that I do have looking me in the face all the time.

I have already asked for a CLI on the ring and even the Amex around October last year, both were raised a little bit but not much. I would love to use the Ring as my BT card since it is 0% fees and is such a low interest rate, but I don't think they'd be able to get me to 10k. I'm only paying the minimum right now as I wanted to get my 0% interest cards taken care of prior to them going to their normal rate. Once I got stuff where I wanted it I would end up putting more money towards the card.

I have not called on BT offers, or on rate reductions. The Citi Forward used to send me a monthly 0% for 12 months offer, but I haven't seen that in a long time which is why I was considering the one with my Commerce Bank card. I also considered a PC to the double cash instad of getting the quicksilver, but at the time people on these forums were saying it was a no go, and I even asked and the rep said it wasn't possible at that time. 

As for cutting back, I already have the cheapest internet available, no cable (but I do have netflix and Prime which I'm soon to make Prime Student). As for cell phone, I share a plan with my parents and when I've done the math it's about as cheap as through straight talk to get a comparable service.

I have decided to go back to school to hopefully get on a path to a better paying career, which cuts into my free time for extra work. However, I am trying to get on as a tutor through their work study program which will net a little extra cash.