0% Credit Card Transfer

I’ve had a lot of questions regarding transferring credit card debt to a 0% credit card. I found this video incredibly helpful.

Bank Americard has a 0% transfer fee AND 0% interest rate for 15 months. (February 2019) This is only helpful if you can make the payments. Make sure you go through your recurring expenses to cover the monthly payments to PAY IT OFF in the 15 month grace period.

Here is an interesting calculator to see how the interest stacks up.

  • If you do a balance transfer do NOT use that card for ANYTHING else. That can make your debt repayment confusing.
  • Cancel all other cards, FREEZE your credit and move towards debit cards. Also, have your spouse FREEZE their credit too and you keep the codes (if they need some gentle supervision.)
  • If you feel like you can handle credit cards appropriately, I like the Fidelity card because you can have your 2% cash back go directly into a Fidelity investment account. This is only ok if you pay off the card EVERY month.

Remember the credit card company is SMART. They are not giving you a gift, they are reeling you in, so they can charge you later. Make a budget, make a plan, and stick to it. If you are in a situation where you need to make a budget transfer take a good look at how you got here.

Add Friction to online shopping by deleting your credit card out of all of your accounts.

How did you get behind?

  • Was it a medical emergency? Once this is paid off, focus on beefing up your HSA accounts or an emergency account, always have 1 year’s deductible ready.
  • Was it a vacation that got out of hand? Set up a money market with a small amount to start saving, such as $20/month. (No vacations until you have the proper amount saved.)
  • Was it your wardrobe? Take a deep breath and go into your closet and repeat after me, “I have enough, I am enough, I’m beautiful no matter what I own.” It’s hard, I’ve been there.
  • What else happened that brought this on? Will you repeat the same mistakes over and over? Tragedies happen ALL OF THE TIME, prepare for it. Once this is paid off, really think about how much your emergency account needs. Keep at least $5,000-$10,000 and you can use your Roth IRA as an “Oh Sh!T I lost my job emergency account. You can pull the principle out without fees but it can NEVER go back in. It better be a real emergency to sacrifice your future needs.

Sorry, that was my tough love approach. I believe that everyone can have a turning point in their financial life. People go from broke to retired all of the time. You can too, don’t give up!

I make nothing off of the credit card options I presented, comment with better cards if you see them.

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