Balance Transfer Vs. Paying off one credit card with another

tidalwave · 11-03-2009, 07:48 PM

Right now, I currently have two credit cards. My visa has a LOC of $1,500 and my balance is $0. My Discover has a LOC of $4,750 and my balance is $3,755.

I am trying to do all I can to pay off this bill. Prior to the summer, the interest rate was 29%. In July, upon my request, they decreased the rate to 16.5%.

Now, just last week, I received a letter from Discover, informing me that they are increasing their interest rate up to 27% in December. The letter stated that if I didn't agree to this increase, I could notify them and they would close the account, leaving me with my current balance at my current interest rate.

So, I am debating either transferring the balance to a new credit card, or simply signing up for a new credit card with 0% intro apr and paying a large chunk of the Discover bill with it.

I have never done anything like this before and I only want to open up another credit card if it will definitely help me pay off this bill. It seems like having 0% interest for 3-6 months will be a huge help in getting this debt paid off.

I would love to hear suggestions & tips from people with experience. I also want to take my credit score into consideration with opening a new account. I really just want to get this one credit card balance down and manageable.

I appreciate the help!

Dr Dean · 11-07-2009, 08:46 AM

Great question tidalwave!

Getting the balances paid off should be your number one priority. If you don't do this and change your spending habits, the shifting of balances can go on forever and ever...

However, if you are going to commit to change your spending behavior, then a balance transfer of as much as possible makes the most sense (pun intended)-to lower your interest costs.

I would also suggest doing a short-term money raising blitz. Yard sale, ebay sale, part-time job, drop cable, cell phone or some other monthly bill temporarily until you get these paid off.

Getting your balances down below thirty percent of your credit limit on each will help your credit score.

Getting them all paid off and not going there again will help your quality of life, and allow you to begin building an emergency savings account so you don't have to use credit cards forever.

Good luck!

ICBCINTERGER2 · 11-07-2009, 06:02 PM

Great question tidalwave![img]http://www.*********.com/img/4713/n09x0302vnsn/clear.gif[/img]

11-03-2009, 07:48 PM	#1
tidalwave Junior Member Join Date: Nov 2009 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	Balance Transfer Vs. Paying off one credit card with another Right now, I currently have two credit cards. My visa has a LOC of $1,500 and my balance is $0. My Discover has a LOC of $4,750 and my balance is $3,755. I am trying to do all I can to pay off this bill. Prior to the summer, the interest rate was 29%. In July, upon my request, they decreased the rate to 16.5%. Now, just last week, I received a letter from Discover, informing me that they are increasing their interest rate up to 27% in December. The letter stated that if I didn't agree to this increase, I could notify them and they would close the account, leaving me with my current balance at my current interest rate. So, I am debating either transferring the balance to a new credit card, or simply signing up for a new credit card with 0% intro apr and paying a large chunk of the Discover bill with it. I have never done anything like this before and I only want to open up another credit card if it will definitely help me pay off this bill. It seems like having 0% interest for 3-6 months will be a huge help in getting this debt paid off. I would love to hear suggestions & tips from people with experience. I also want to take my credit score into consideration with opening a new account. I really just want to get this one credit card balance down and manageable. I appreciate the help!

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
What's smarter: Balance Transfer of Personal Loan?	RyinLA	Personal Finance	17	11-03-2009 05:25 AM
Balance Transfer? What do you think?	khorrell	Personal Finance	9	04-16-2009 06:52 PM
Keep or Close Zero Balance Credit Cards? Please Advice.	Ghulam	Personal Finance	7	06-30-2008 05:44 PM
just a survey.Do you have a credit card at 18?	fluffysamantha	Personal Finance	16	03-18-2008 08:12 AM
Do You Use Your Credit Card On The Net?	amandajane	Personal Finance	26	03-01-2008 09:04 PM

11-07-2009, 08:46 AM	#2
Dr Dean Junior Member Join Date: Oct 2009 Location: Georgia Posts: 14 Thanks: 1 Thanked 2 Times in 2 Posts Reputation: (12)	Great question tidalwave! Getting the balances paid off should be your number one priority. If you don't do this and change your spending habits, the shifting of balances can go on forever and ever... However, if you are going to commit to change your spending behavior, then a balance transfer of as much as possible makes the most sense (pun intended)-to lower your interest costs. I would also suggest doing a short-term money raising blitz. Yard sale, ebay sale, part-time job, drop cable, cell phone or some other monthly bill temporarily until you get these paid off. Getting your balances down below thirty percent of your credit limit on each will help your credit score. Getting them all paid off and not going there again will help your quality of life, and allow you to begin building an emergency savings account so you don't have to use credit cards forever. Good luck!

11-07-2009, 06:02 PM	#3
ICBCINTERGER2 Junior Member Join Date: Nov 2009 Posts: 5 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	Great question tidalwave![img]http://www.*********.com/img/4713/n09x0302vnsn/clear.gif[/img]