ChooseFI
0% Interest Balance Transfer

0% Interest Balance Transfer

Ro
Rootfifth · · 4 replies

I am currently working on eliminating all my credit card debt and my car loan, both total to about $12k. It’s not too bad but the interest rates on the credit cards, one at 21% and the other at 19%, are making things difficult.

I have thought about opening another card with a low or no interest balance transfer.

I feel it’s safe to assume that paying off the balance transfer in full before the promotion period ends should be the goal.

But I’m curious as to the potential pro’s and con’s of opening another card for the 0% interest on balance transfers.

Share
Share on Facebook
Share on X
Share on Reddit
Share via Email
Copy link

Replies (4)

Myfutureself

Myfutureself

1 year ago

When my girlfriend, now wife, was paying off debt she did open a new card with 0% rate and balanced transferred to it. There was a fee, but it was less than keeping the balance on the higher interest rate card. She dug deep and paid off the loan before the teaser rate expired. She cancelled streaming services, cut out unnecessary spending and any additional income went into the debt payoff. She was so gazelle focused that even the $5 birthday money from Grandma went against the balance.

Other than the balance transfer fee, and the slight ding on her credit report for the new card there wasn't any drawback. Eventually her credit score went up and she's over 800 today.

Credit is like any power tool. Wielded responsibly it can make tasks easier, but if applied incorrectly it can have awful consequences.

Showing 1 of 4 replies

View all replies on Community

Comments

Your comment will be posted after signing in
Join the Conversation

Create an account or sign in to post a comment.

Username
Email

No password needed. We'll send a verification email.

Email
Password

Find Your FI Number

Calculate how much you need — takes 60 seconds.

What's Your FI Number? Find out in 60 seconds

Join ChooseFI

Start your financial independence journey

  • Access to the ChooseFI community
  • Exclusive FI resources and tools
  • Weekly actionable insights
or

No password needed — we'll email you a verification link.

Already have an account?

Don't have an account?

Try searching for

⌘K to open anytime

Your FI Journey

1/3

Step 1 of 3

How familiar are you with Financial Independence?