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My Plan has been Foiled!

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If you read the post before this one, I wasn’t sure what credit card to pay using my overpayment refund, but a master plan was brewing in my mind (muwahaha).

I was ready and raring to go and to pay off Credit Card #4 and wait for a nice balance transfer option to then use towards Credit Card #2. But then I looked in my mailbox today and received a balance transfer offer from Credit Card #4:

4.9% until September 2006 – and has a balance transfer fee of $50.

Only 4 months at the lower rate PLUS a balance trasfer fee. Given the short timeframe of the interest rate and the fee – it probably isn’t worth it to send my refunds to that card. Perhaps I should just pay it all towards Credit Card #2??

If anyone has a few words of wisdom to share, that’d be great 🙂

Technorati Tags: credit+card, credit

Now, the Question is…Who Should Get the $5,600?

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I received my overpayment refund from Credit Card #3. Now, the question is … who should get it?

Credit Card #2 appears to be the logical choice. There’s $22,041.93 sitting on that card at 16.49% (the highest rate of all of my cards). You may be wondering why I am even contemplating another choice.

Well, my overpayment refund combined with my tax refund will be enough to pay off Credit Card #4 completely. That balance is sitting there at 14.9%.

What I am thinking of doing is using my refunds and paying off Credit Card #4. As they have always done in the past, they have offered great balance transfer offers (usually around 2.9 – 4.9% for 6-12 months) when my balance is low. They “should” do that again if the card is paid off.

So, the two scenarios are

$8,000 at 4.9%
$14,000 at 16.9%.

or

$8,000 at 14.9%
$14,000 at 16.9%

But what if Credit Card #4 doesn’t offer a great balance transfer rate? Is it a good enough chance to take?

Any advice for the debt-fighting newbie?

Technorati Tags: credit+card, debt, credit