cancel
Showing results for 
Search instead for 
Did you mean: 

How do I manage my credit card debt?

Highlighted
Regular Contributor

How do I manage my credit card debt?

Hello everyone,

 

I have a credit card debt of $3800 with BofA. My credit limit is $15,800 and my APR is 25.24%. 

 

I just saw that this month I paid $76 and some change in interest. I have an offer on the same credit card for direct deposit, 0% until April 2020 and 3% transaction fee. Should I take that offer and pay off my credit card debt?

 

Like take that offer and I will be charged $90 if I take out $3000 in cash and I won't be charged anything until April 2020? And can I use that money to pay off the same credit card, so that I pay less in interest?

 

Please help! Thanks

17 REPLIES 17
Highlighted
Contributor

Re: How do I manage my credit card debt?

Am I misunderstanding you or are you asking if you can use the BT offer on your credit card on the debt that’s already on the credit card?
FICO 8 Scores 4/1/2018: 694 EX 714 EQ 740 TU FICO 8 Scores 6/16/2019 770 EX 798 EQ 791 TU

Wells Fargo Cash Wise $20,000 [] PenFed Power Cash $20,000 [] HSBC Cash Rewards $3,750 [] Discover It $5,100 [] Maurice’s $5,000 [] CO Savor $15,000 [] NFCU Flagship $18,000 [] Amex Rose Gold [] Walmart $800 [] Kohl’s $1000 [] Amazon Store Card $300 [] American Express Cash Magnet $1000 [] USAA Cashback Rewards Plus American Express Card $4500 []
Message 2 of 18
Highlighted
Regular Contributor

Re: How do I manage my credit card debt?


@frencheese wrote:
Am I misunderstanding you or are you asking if you can use the BT offer on your credit card on the debt that’s already on the credit card?

Yup that's exactly what I am asking. If I take that offer and just pay one time fee of $90 on $3000, can I pay off my credit card using that same money? Because the offer has 0% APR until April 2020 and right now I am paying regular interest rate. Even though my debt is still going to be there, I will avoid paying higher monthly interest.

Message 3 of 18
Highlighted
Community Leader
Mega Contributor

Re: How do I manage my credit card debt?

Edit: totally missed you said BofA. I don't think they like when people do that, but I'll leave it to someone with actual experience.







Message 4 of 18
Highlighted
Contributor

Re: How do I manage my credit card debt?

I’m with Brian on this. It doesn’t sound like something you should be able to do, but that doesn’t mean it’s not doable. Hopefully a BT expert will chime in.
FICO 8 Scores 4/1/2018: 694 EX 714 EQ 740 TU FICO 8 Scores 6/16/2019 770 EX 798 EQ 791 TU

Wells Fargo Cash Wise $20,000 [] PenFed Power Cash $20,000 [] HSBC Cash Rewards $3,750 [] Discover It $5,100 [] Maurice’s $5,000 [] CO Savor $15,000 [] NFCU Flagship $18,000 [] Amex Rose Gold [] Walmart $800 [] Kohl’s $1000 [] Amazon Store Card $300 [] American Express Cash Magnet $1000 [] USAA Cashback Rewards Plus American Express Card $4500 []
Message 5 of 18
Highlighted
Established Contributor

Re: How do I manage my credit card debt?

So, you're telling me that you have a BT offer on your card which you have debt on, can you have that debt paid off completely but still owe that debt plus interest? To me, logically and economically it doesn't make sense. That's like saying, can you have a personal line of credit to pay off your credit card. I mean yeah you can... But why would you? It's like more debt on more debt.

Bro, if I were you, this is what I would do. Real talk, I would get a full time job with a lot of overtime, and I'll get a part time job on the weekend, work thru a temp agency if you have to. That's what I do and will continue to do, I'm almost done paying off my $1.7K debt.

If say you 0% promo is over just like you said you're not paying that much and interest on, I would use a BT card like Slate, Diamond Preferred/Simplicity and transfer the money to that account, yeah you will pay a fee but your debt would be paid off, however you will have almost 21 months if you choose the Diamond/Simplicity and do it that way. Pay $300-500/m on it. Live life frugal bro. You have to make sacrifices if you want to make it in the real world...
Message 6 of 18
Highlighted
Community Leader
Super Contributor

Re: How do I manage my credit card debt?


@alybutt92 wrote:

Hello everyone,

 

I have a credit card debt of $3800 with BofA. My credit limit is $15,800 and my APR is 25.24%. 

 

I just saw that this month I paid $76 and some change in interest. I have an offer on the same credit card for direct deposit, 0% until April 2020 and 3% transaction fee. Should I take that offer and pay off my credit card debt?

 

Like take that offer and I will be charged $90 if I take out $3000 in cash and I won't be charged anything until April 2020? And can I use that money to pay off the same credit card, so that I pay less in interest?

 

Please help! Thanks


Hi OP

 

Do you have another checking account that is not with BOA? If yes, have the BT deposited to that checking account. Let it season for about a month. Then use it from there to pay off the BOA credit card. The reason for doing it this way is that usually a financial institution will not allow you to use one of it’s CC to pay off one of it’s accoints. 

 

It is absolutely nothing wrong with saving $76/month and using that interest to pay off the CC quicker and with less monies. That $90 fee is almost taken care of with one month of interest that you’ve been paying. 


DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macy's $20K || NFCU CLOC $15K || CitiCostco $12.7K || NFCU Platinum $12.5K || Apple Card $6.5K ||
Message 7 of 18
Highlighted
Community Leader
Super Contributor

Re: How do I manage my credit card debt?


@TheBoondocks wrote:
So, you're telling me that you have a BT offer on your card which you have debt on, can you have that debt paid off completely but still owe that debt plus interest? To me, logically and economically it doesn't make sense. That's like saying, can you have a personal line of credit to pay off your credit card. I mean yeah you can... But why would you? It's like more debt on more debt.

Bro, if I were you, this is what I would do. Real talk, I would get a full time job with a lot of overtime, and I'll get a part time job on the weekend, work thru a temp agency if you have to. That's what I do and will continue to do, I'm almost done paying off my $1.7K debt.

If say you 0% promo is over just like you said you're not paying that much and interest on, I would use a BT card like Slate, Diamond Preferred/Simplicity and transfer the money to that account, yeah you will pay a fee but your debt would be paid off, however you will have almost 21 months if you choose the Diamond/Simplicity and do it that way. Pay $300-500/m on it. Live life frugal bro. You have to make sacrifices if you want to make it in the real world...

OP has asked a legitimate question. How can he/she manage debt on one CC? Please let’s try to stay on topic and  not give advice that wasn’t asked for.

 

It is okay to see if there’s a way to save money on interest and this is what a lot of us use BTs for. I know I do and it doesnt mean I’m in debt and need another job or a PT gig. It only means if I transfer to a 0% APR card, I’ll save X amount of dollars for X number of months, thereby saving interest money and using that savings to pay down the balance quicker and hopefully before the promo expires. 


DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macy's $20K || NFCU CLOC $15K || CitiCostco $12.7K || NFCU Platinum $12.5K || Apple Card $6.5K ||
Message 8 of 18
Highlighted
Established Contributor

Re: How do I manage my credit card debt?


@CreditInspired wrote:

@alybutt92 wrote:

Hello everyone,

 

I have a credit card debt of $3800 with BofA. My credit limit is $15,800 and my APR is 25.24%. 

 

I just saw that this month I paid $76 and some change in interest. I have an offer on the same credit card for direct deposit, 0% until April 2020 and 3% transaction fee. Should I take that offer and pay off my credit card debt?

 

Like take that offer and I will be charged $90 if I take out $3000 in cash and I won't be charged anything until April 2020? And can I use that money to pay off the same credit card, so that I pay less in interest?

 

Please help! Thanks


Hi OP

 

Do you have another checking account that is not with BOA? If yes, have the BT deposited to that checking account. Let it season for about a month. Then use it from there to pay off the BOA credit card. The reason for doing it this way is that usually a financial institution will not allow you to use one of it’s CC to pay off one of it’s accoints. 

 

It is absolutely nothing wrong with saving $76/month and using that interest to pay off the CC quicker and with less monies. That $90 fee is almost taken care of with one month of interest that you’ve been paying. 


Is this right?  If certain financial institutions grant cash advances that shouldn’t be used to pay debt owed to them, isn’t this advice giving the OP a way to violate that agreement?  

 

Message 9 of 18
Highlighted
Super Contributor

Re: How do I manage my credit card debt?


@alybutt92 wrote:

Hello everyone,

 

I have a credit card debt of $3800 with BofA. My credit limit is $15,800 and my APR is 25.24%. 

 

I just saw that this month I paid $76 and some change in interest. I have an offer on the same credit card for direct deposit, 0% until April 2020 and 3% transaction fee. Should I take that offer and pay off my credit card debt?

 

Like take that offer and I will be charged $90 if I take out $3000 in cash and I won't be charged anything until April 2020? And can I use that money to pay off the same credit card, so that I pay less in interest?

 

Please help! Thanks


No you're not allowed to use a Bank of America balance transfer offer to pay off a Bank of America debt.


Total revolving limits 653000 (575000 reporting)

Message 10 of 18
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.