Comments on: Credit Card Balance Transfer Advice – Bender Answered

By: Shanti Rozo

Shanti Rozo — Thu, 02 Dec 2010 17:52:30 +0000

Hey, you used to write great, but the last few posts have been kinda boring… come on!

By: Matt Jabs

Matt Jabs — Wed, 12 May 2010 20:38:02 +0000

Hi Lynda, I would make bankruptcy a very last option. Continue making your payments and possibly see about getting a second job to earn more.

By: Lynda

Lynda — Wed, 12 May 2010 15:33:36 +0000

Hi Matt,
This is my situation. I have $24,000 in credit card debt, $28,000 in a home equity loan, and a first mortgage of $123,000. A year ago my home was appraised at $155,000.
Hours at work have been cut down to 32 hours and raises have been frozen for a year and half. I live in a small tourist town where the biggest employer is an Indian Casino where I am lucky enough to be employed at. Good paying jobs aren’t around. I want to point out that I’m single & 61 yrs. old and don’t have another income. I have a 401K but I don’t want to touch it.
My question is should I just continue to sweat out each month on my required payments,or see if I can increase my 2nd mortgage to pay off the credit cards which will cause my monthly payment to go up or file for bankruptcy?
I know there are million of people that are in worst situations than I am but the stress is getting to me. Filling bankruptcy will be an embarrassment to me personally but if I have to bite the bullet and do it so be it.
I have started snowballing throwing an extra $10 but it’ll take forever to pay off
one credit card.
Any suggestions?
Thank you for your time—–

By: Steve in W MA

Steve in W MA — Thu, 01 Apr 2010 06:36:19 +0000

My perspective: you only owe $5000. If you can count on being able to pay $1500 per month towards that once your new job starts, then it is basically gone debt. Just sit tight and pay them off. Paying them off in four months means you’ll only be paying about $300 in total interest. Then don’t run up a debt ever again and you’re good. You can save $1500 a month which will give you a cool $8,000 or so in cash by Christmas time.

By: Robert Espe

Robert Espe — Mon, 11 Jan 2010 17:05:15 +0000

Bender asked if he should shred the cards, in his case I would say yes. Shred two, and keep the BOA card in a block of ice. Over $4k paying %30… The highest rate card I was ever offered charged %18, my current rate is %6 (not that I’ve ever carried a balance at any interest rate).

By: Lakita

Lakita — Mon, 11 Jan 2010 14:06:22 +0000

One thing I would ask Bender is if the 0% BoA balance something that is going to expire soon? If so, what would the balance be afterward?

By: Frank @ Turn Key Consulting

Frank @ Turn Key Consulting — Mon, 11 Jan 2010 07:38:27 +0000

The concept of a credit card balance transfer seems simple enough, but there are a number of steps involved that are critical to successfully moving money owed from a high interest credit card to one that offers a lower annual percentage rate. firstly we should consider your current credit situation and second important thing to consider is the amount you wish to transfer. The option to transfer balances from a high rate credit card to one offering a lower APR — or even 0 percent if you qualify — for several months or longer can be a smart financial move.

By: Jimmy Kibler

Jimmy Kibler — Sun, 10 Jan 2010 20:26:39 +0000

Credit card companies can be difficult to deal with unless you are 3 months behind and then they will work with you and lower your interest rate.

By: BG

BG — Sun, 10 Jan 2010 16:38:03 +0000

Be careful with balance transfers — read the fine print. Most balance transfers cost an immediate 3% (or more) in ‘fees’, even though the APR may temporarily be 0%.

By: LeanLifeCoach

LeanLifeCoach — Sun, 10 Jan 2010 14:13:52 +0000

Excellent job Matt – The only thing you missed is Don’t Let It Happen Again!