Friday, 28 December 2007

Taking Advantage Of 0% Interest To Get A Jump On 2008

I decided to consolidate two of my credit cards (1 and 7 on my ugly truth list) into one today to take advantage of a reduced ongoing interest rate on card 1 (down 2% to 9.95%) and 0% for 6 months (then 9.95% ongoing) for card 7 (currently 18.75%) once they’re both together.

The new balance will be just under $7500 combined and will mean I only have 5 open credit cards instead of the original 7 I started with in September.

Card 7 is currently my focus card that also receives any snowball payments, which I’ll now combine with the fixed minimum payment I've been paying on card 1 ongoing. This should help speed the repayments along when combined with the lower ongoing interest rate and the interest free period on the balance transfer, which will get paid off first.

Card 1 would have been the next card on my snowball plan anyway, so it makes sense to me to take advantage of this offer.

The other interesting thing I found out was that as long as there’s a 0% offer running on the new card and I have enough available credit on it, I can transfer future balances onto it without having to set up a new account, and start another 6 months at 0% on that new balance. Something to ponder once I've got this first lot paid off!

My stretch goal is to have the entire $7500 paid off by the end of May 2008.

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  1. I too have been doing the rate tart game and trying to move balances from one 0% card to the next but my rubbish credit rating has made this really hard to do. It is amazing how much credit you can get even when they (the banks) thing your such a risk.
    One of my credit cards lists the interest rate on the front page of the statement and I watched it go from 15.9% to 19.9% in just a few months. I messaged them online and asked what was going on and could they please lower the interest rate back. Which they did! (It pays to just ask some times)
    All the best with your slog - Happy New Year and I look forward to seeing how you do for 2008.

  2. oop sorry about the spelling!

  3. Hi. I find your blog very interesting. I look forward to reading more of it. Have a happy new year!

  4. thats really good to get those rates and you may as well take advantge of balance transfers.I keep trying to do a 0% balance transfer but still no luck.