I’ve got around $14k in credit card debt, and right now, I’m only able to make $300 monthly payments (with a minimum of $280). I’ve been thinking of getting a balance transfer card with a 0% APR for 15-24 months to see if that helps, but I know that with $300 payments, I wouldn’t be able to pay it all off in that time.
I’d have to pay a transfer fee, probably around $500-700 on $14k, but at least I’d start seeing the actual balance go down since there’d be no interest.
Here’s my question: Is it possible to keep switching to new balance transfer cards every 15-24 months to buy more time to pay it off? If I could get a 0% APR for 24 months, my balance could go from $14,700 (after transfer fee) down to around $7,500, then I’d transfer again and eventually knock it down to a level I could pay off in a few months. It’s a big difference from the 50-year timeline my current rate would take.
My worry is that the balance transfer limit won’t cover the full $14k, leaving part of the debt on my original card with a high interest rate. Any advice on this? The only other debt I have is my car loan, and I’m considering refinancing that to free up a bit more cash for these payments.
You probably could if the credit limit is high enough on the new card.
If I were in your shoes, I’d try to find a way to bring in extra money to pay down the debt instead of constantly paying transfer fees. Just my opinion, though.
@Reagan
Any suggestions on how to make extra money? I tried DoorDash here, but it’s pretty dead. Barely any orders come in, so I end up waiting around for hours to make $12.
Vale said: @Reagan
Any suggestions on how to make extra money? I tried DoorDash here, but it’s pretty dead. Barely any orders come in, so I end up waiting around for hours to make $12.
Anything else you can try? Maybe sell some stuff? Or maybe a part-time job that doesn’t rely on apps?
@Reagan
I’ve sold most of what I can, probably could make another $100 at most. Full-time job and being a single parent limits me too, especially with no nearby family for child care. Need something remote or a side gig that’s flexible.
Yes, you technically can, but you might not get approved for a card with a high enough limit to cover everything. Earning extra could help pay it down quicker.
Parker said:
Yes, you technically can, but you might not get approved for a card with a high enough limit to cover everything. Earning extra could help pay it down quicker.
Finding higher-paying work is hard where I am. Small town, so options are limited, and gig work isn’t much help either since there aren’t enough orders.
After my divorce, I had 18k in credit card debt, and it felt impossible with the high interest. I thought about balance transfers, but those high limits are hard to get unless you’ve got great credit. Plus, every time you apply, it dings your credit score.
I ended up going with an unsecured loan from my bank at a much lower rate. It finally felt manageable, and I was able to make extra payments and see real progress. I stuck to a strict budget and paid it off in 18 months. After that, I was able to start saving.
Now I only use my credit card for online payments, and I pay it off right away. Plus, the credit card perks are nice without worrying about debt building up again.
Look into personal loans, budget carefully, and you might see the light at the end of the tunnel.
Vale said: @Phoenix
Any tips on what to watch for with unsecured loans? I know rates are high right now.
With credit card rates around 18-25%, even a personal loan at 7-12% is a big improvement. Check your credit score first. Many credit cards show it for free in your account.
If you’re around 700 or higher, you should get a decent rate. Start by asking at your bank, then maybe compare a couple others. Just don’t let them run your credit until you’re really ready to apply. Every inquiry hits your score a bit.
@Phoenix
Yeah, my rate is 17.6% now, and last I checked, my score was 726. I’m worried about too many inquiries if I check multiple places, but it seems like a personal loan is my best option.
Vale said: @Phoenix
Yeah, my rate is 17.6% now, and last I checked, my score was 726. I’m worried about too many inquiries if I check multiple places, but it seems like a personal loan is my best option.
They can’t pull your credit without your info. You can just ask a bank teller about rates first. Most banks won’t charge fees for a personal loan, but they might want you to open an account with them.
With a 726 score, you should be in good shape. Good luck with it!
Check out local nonprofits that offer credit counseling. They can negotiate lower rates with credit card companies, and they’ll set you up with a payment plan you can manage. They’ll close your cards while you’re in the program, but it won’t hurt your credit score.
I went through this with Family Means and recommend it if you’re serious about getting debt-free.