Just did a balance transfer and cut my interest rate more than in half.
I actually dont have credit card debt, but I had a personal loan from Bank of America for about $13K that was taken to pay off high interest auto repair (on an auto shop card) and very high interest vetrinary surgery (on Care Credit). I actually used my entire emergency fund + this loan to cover these costs. The auto repair and the death of my puppy (after 2 surgeries) fell within the same week. So, yeah, two emergencies in one week.
The minimum payments on this loan were $504/ mo and the interest rate
You might want to sit down Keep in mind my credit score was/is in the upper 700s
The interest rate was 22.99%.
It wasnt supposed to be, but BoA is shady and though they advertised this loan as a personal loan, it was actually just basically a line of credit, like any high interest cc. Something I did not figure out until it was too late.
Anyway, last week, I finally had had enough. A person with a score in the upper 700s should not be paying 22.99% for ANYTHING.
I got an invitation from Discover for a loan through them, and managed to get the remainder of balance transferred to them at a 10.99% rate. MUCH better. I was assured (on tape even!) that this is a fixed rate and that this will be handled as an installment loan. The minimum each month is $286 (I plan to pay $600 like I was paying on the other one). This will have the loan paid in less than 2 ½ years. (Well, unless two more huge emergencies eat up my E-fund again in the span of a week. Seems unlikely though).
I am sharing this because I see a lot of posts on here where people are depressed and distraught over their debt. But there are ways to make things better for yourself and balance transfers are one of them. Look very closely at your interest rates and if you are paying too much, try to do a transfer, even if you can only transfer part of your high interest debt, its worth a shot. It will make a difference in the long run.
I actually dont have credit card debt, but I had a personal loan from Bank of America for about $13K that was taken to pay off high interest auto repair (on an auto shop card) and very high interest vetrinary surgery (on Care Credit). I actually used my entire emergency fund + this loan to cover these costs. The auto repair and the death of my puppy (after 2 surgeries) fell within the same week. So, yeah, two emergencies in one week.
The minimum payments on this loan were $504/ mo and the interest rate
You might want to sit down Keep in mind my credit score was/is in the upper 700s
The interest rate was 22.99%.
It wasnt supposed to be, but BoA is shady and though they advertised this loan as a personal loan, it was actually just basically a line of credit, like any high interest cc. Something I did not figure out until it was too late.
Anyway, last week, I finally had had enough. A person with a score in the upper 700s should not be paying 22.99% for ANYTHING.
I got an invitation from Discover for a loan through them, and managed to get the remainder of balance transferred to them at a 10.99% rate. MUCH better. I was assured (on tape even!) that this is a fixed rate and that this will be handled as an installment loan. The minimum each month is $286 (I plan to pay $600 like I was paying on the other one). This will have the loan paid in less than 2 ½ years. (Well, unless two more huge emergencies eat up my E-fund again in the span of a week. Seems unlikely though).
I am sharing this because I see a lot of posts on here where people are depressed and distraught over their debt. But there are ways to make things better for yourself and balance transfers are one of them. Look very closely at your interest rates and if you are paying too much, try to do a transfer, even if you can only transfer part of your high interest debt, its worth a shot. It will make a difference in the long run.
