Tranferring debt from one credit card to another.?

Question

I'm currently struggling to pay off a major credit card. I only have a credit line of $1,100, but it seems no matter how much I pay, I can't seem to seem to get it down.

I will admit that at one point this year (after college graduation), I was very dependent on my card and even maxed out a few times, but since then I've been making regular above the minimum payments ($45 to $55). The craziest thing is that I haven't used my card in 2 months but some how managed to max out again. Insane right?

I'm to the point to where I'm considering just paying off my debt with another card. I'd probably cut up the old card (keeping the account open) and make sure to have the debt on the new card payed down to atleast $500 by the end of the "no apr" grace period, but I'm worried this method may put a dent in my credit score being that in total I'd have 2 major cards and 3 store cards (no issues with these).

Do I just tough it out or get another card?

Answer 1

I would transfer the debt to another card for sure, but I would keep the old account open and use it a couple of times a years for something small and pay it off in full as soon as you get the bill.

This will be best for your credit score and profile.

Answer 2

about the "no interest" grace period ...

it ONLY applies to the balance transferred. if you use the card for ANYTHING else, the amounts due for everything else accrue interest at some high and very nasty interest rate -- likely 31% APR or higher.

AND, all of your payments go toward the balance transferred, ONLY. [until it is entirely paid off.]

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THUS -- the only way to get ahead with such a transfer is to immediately destroy the new card and NEVER use it for anything.

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you'll discover that the balance transfer process

1) closes your old account
2) takes 6 to 8 weeks to complete, AND that minimum payments still apply to the old account AND interest is still added on.

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if you can not live without an available charge card, you thus need two new ones. card 1 will be the balance transfer card and card 2 will be the one you use in stores.

in order to get ahead, you MUST pay off card 2 every month in full. in FULL. completely.

or you'll end up right where you are, except the hole will be deeper than ever.

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any way you slice it [no matter what you do], you have to hold your spending below your income by AT LEAST the amount of your charge card payments.


note: figure your payments on the new card as the transferred balance divided by the number of months you get "free" interest. ALWAYS pay at least that much toward the new card -- you do not what to see what happens to your balance afterward if you don't pay it off completely.

the interest rate after the grace period on these cards is usually the highest in the industry. [lower than payday loan operations, but still the highest of all charge cards.]

8-)

Answer 3

I would start with a written budget. That way you can see exactly where your money is going. When I started doing a budget I felt like I got a raise.
Get another job til the card is payed off.
Use the card transfer game as a last resort.

I would get rid of and cancel all the cards and not play the game. Thats what it is, its a game. When you start losing at the credit card game its hard to get out of the game. I think you know that all to well. High interest rates, late fees, over the limit fees.
Pay as you go and live on less than you make. You will win with money.

borrower is definitely slave to the lender.

Debt Free is the way to be!

Answer 4

If you can get approved for the second credit card and it is a 0% with transfered balances go a head, but don't just cut up the other credit card, cancel it. Also, cancel the store cards. If you want your credit record to improve, you should have only 1 credit card that is kept current, and no other cards. The other cards don't add to your credit history, they are just temptations, and more likely to be overlooked by you for payment. Before you know it, you have missed payments and bad credit again.

Answer 5

cogragulations on being debt savy, if you get a 0% card watch it if you use it the new purchases will not get paid untill the transfered bal. is paid in full ,in other words if you use it for 10$ for gas and send them 60$ thinking 10$ will go to the new purchase and 50$ goes to the payoff the 1100$ transfered thihk again the entire 60$ goes to the 0% transfered and the 10$ new purchase doesnt get paid till the transfered bal. is paid off( you must read the fine print) the credit card industry is nothing but "legal loan sharks"I have (with the help of my bride ) had several cards with balance in exess of 5,000$ and done the trnsfr. bal thing a couple times just to buy me time till I found "somewhere to "borrow" the 5000$ to pay the card off in full.....I tell my bride that credit cards are a valuble tool for the unrich (me) but you can wreck you life if you don"t play the game smart....you have discoverd that paying off a balance on a card is difficult ,even without using it ,(I hope you know, if you are "late" on you'r "utility" bills pay you'r phone/electric bill late, the c.card co. have the right "by law" to increase you'r int.rate?!!)credit cards are finacial tools use them wisely ,know the written and unwritten rules .........my advise to you is to transfere to the 0% bal. card(if you like the card co. the 1100$ bal. is comming from, I would not hesitate to keep it,if you pay for the purchases immidetly and keep the balance low, keep using it keep paying the balance off-thats good,if not cancel it) untill you can borrow the 1100$ to pay the full balance off ,family or freinds ,don't overlook a personel loan from a bank.....if they will not lend you that small amount perhaps a liitle bigger loan to consolidate all you'r debt.................hope this helps

Answer 6

Transfer it to the lower apr. Then close it. Get the thing paid off. It doesn't make sense to struggle to pay a credit card then not transfer it to pay it off just because you're worried about your credit score. It's not going to dent it.

Answer 7

Get another card at zero percent, but close out the original card, having it open will affect your credit score, and will be a temptation.