Sep 09

Yelp, I’m buried!

 

Are you buried under debt?  Specifically Credit Card Debt.   I know lots of people carry credit card debt.  I think the credit agencies are even now required to post on your bill how long it will take you to pay it off if you pay the minimum and how much it will total.  We have been lucky to keep our cards paid off every month. I am bad though about carrying a balance on cards that give 0% interest when I have a big purchase to make… Like the unplanned for fridge that we had to buy last month.

Store cards frequently have these deals (you can get them from card companies sometimes too)  The store card deals are great ONLY if you pay off the balance before the final date and you pay are always on time with your payments… Otherwise you get the entire interest you would have paid tacked on – and that is usually at a really high rate.  Best Buy has this deal with their card for any large purchase. They even include the date at the bottom of your bill that you HAVE to pay off by. (These deals are on new purchases)

If you have pretty good credit you will sometimes get offered these deals through your current credit cards.  The catch is that there is a transfer fee and any previous balances will still accrue interest (and are paid off last).  Keep a close eye on the fine print on all these deals.  I generally follow the plan that if I have to pay to get the deal it most likely isn’t worth it.  – If you are paying interest currently on your cards and the fee is small then this  might be worth it.

 

Remember though to take the total amount owed and divide by how many months you have to pay off the balance – then substitute that for your required minimum payment.  If you do this can really pay off in the long run!  You are eating away at the debt a lot quicker if the whole payment goes to principal!

 

[poll id=”8″]