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bonus color of money chat q: should they pay off their 9.1% credit card balance now, or the one that is at 0% but will jump to 10.9% soon?

Posted by moles (aka chris) Oct 13 '11, 10:34

PAYING DOWN CREDIT CARD DEBT

Michelle, I'm hoping you can weigh in with a tie-breaker here. We are paying down our credit card debt and recently transferred a balance to a 0% (no transfer fee, too) card for a year and have another card with a balance and a 9.9% IR. If we put the majority of our snowball towards the card with the 9.9 IR we can get it paid off in approximately 2 months. One of us wants to do that and the other thinks the minimum should be paid on the card with the unchanging IR and the majority of the snowball should go to the card that will go from 0 to 10.9 in a year (with all the interest that was accumulated over that time due as well). What do you think? Thanks!

Responses:

Is "accrued interest due later" a new credit card fad? That sounds like a subprime-mortgage-with-balloon-payment bubble waiting to happen. -- nm - Max Oct 13, 10:45 6
- we got a new cc that had that for all retail purchases. which... is pretty much everything? -- nm - kare Oct 13, 10:52 1
  - (visa with airline miles through boa.) -- nm - kare Oct 13, 10:53
- I remember that being pretty typical for major purchases like furniture. 0% for 3 years - oblique Oct 13, 10:47 3
  - yup. -- nm - znufrii Oct 13, 10:51
  - Yeah, it's pretty common for those "X Months, No Interest" store financing offers, never heard of it on a real credit card before. -- nm - Ender Oct 13, 10:51
  - Rooms to Go did this a lot. -- nm - JaxSean Oct 13, 10:50
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That's not really 0%. -- nm - psilotum Oct 13, 10:43 1
- It is if it's paid off in time. -- nm - JaxSean Oct 13, 10:46
figure out which one will cost you more based on balance and interest. pay the one that costs you more first. (duh?) -- nm - kare Oct 13, 10:39
Pay off the 9.9 in the two months, the next 10 months going towards the 0% one. (Plus, pay the minimums each month on that one.) -- nm - JaxSean Oct 13, 10:37 1
- this would be my plan with the information given. -- nm - sycor Oct 13, 10:41
neither. Open up a 3rd card and take a trip to Cancun on it -- nm - decline Oct 13, 10:37 3
- buy an Audi! -- nm - loosilu Oct 13, 10:38
- and have another child! -- nm - Strongbad Oct 13, 10:38
- Capstern it! -- nm - moles Oct 13, 10:37
My instinct would be the 9.9%. Then you can use the interest saved from that to pay additional towards the 0%. -- nm - Ender Oct 13, 10:37 1
- Oh, if they're still accumulating interest when it's supposedly at 0% then I think znu's right. -- nm - Ender Oct 13, 10:38
find out how much you need to put towards the 10.9% card to get it paid off by the end of the one-year period and put the rest towards the 9.1% -- nm - znufrii Oct 13, 10:36
ah, interest due as well. at this point i'd be putting enough towards the 10.9% card so that it is paid off (one month early) and the rest to the - Andie Oct 13, 10:36 1
- oh, interest due? Missed that. pay that firest. -- nm - loosilu Oct 13, 10:37
depends how much is on each card. -- nm - loosilu Oct 13, 10:36
too many unknowns. -- nm - Reagen Oct 13, 10:35 3
- answer the question! -- nm - moles Oct 13, 10:37 2
  - fuck the lender? -- nm - amanda jones, spawn-hater Oct 13, 10:40 1
    - they would raise my rate and increase my balance :( -- nm - moles Oct 13, 10:41

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bonus color of money chat q: should they pay off their 9.1% credit card balance now, or the one that is at 0% but will jump to 10.9% soon?

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