Living on a Budget, Saving Money/Balance Transfer

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Question
I have a balance transfer offer with two options:

3.99% for 9 months, or
5.99% for 12 months.

both have a fee of 3% with a max of $75.00.

I want to transfer $1,200.00 to one of these offers from an account charging 15.24%.

Which is the best offer assuming I will pay off the balance in either the 9 months or the 12 months?

Thanks!

Answer
Well, I pumped these #'s through my amortization schedule program, and here are the #'s:

1) 3.99% for 9 months:

  Your monthly payment for the $1,200 amount would be $135.56 , and total interest
  paid for the 9 months would be $20.03 ;

2) 5.99% for 12 months:

  Your monthly payment for the $1,200 amount would be $103.27, and total interest
  paid for the 12 months would be $39.29;

Those are the #'s.  You decide whether you want the lower payment/higher interest OR
the higher payment/lower interest.  

Of course, you can pay different, staggered amounts, and then the equation changes.  I
assumed that you would want to pay a fixed amount per month, which might not be what you
want.

I hope this helps.

Sincerely,

Doug  

Living on a Budget, Saving Money

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Douglas Hayman

Expertise

I will gladly answer any and all questions relating to family, home, or household budgeting. I consider myself a pioneer and expert in the area of disciplined budgeting.

Experience

I routinely manage my home budget using my home-grown system. Additionally, in corporate America, I managed a multi-million dollar budget for a technical Fortune 100 Financial Services company for many years.

Publications
(1) "Reduce Your Monthly Budget By 20% Using Simple Budgeting Strategies" (2012) ISBN # 978-0-9081613-1-1 http://www.BudgetSurgeon.com (2) "How to Maximize Traffic to Your Website" (2007) - ISBN # 978-0-9801613-0-4 http://www.expss.com/ebooks/WebsiteTraffic.htm

Education/Credentials
B.A., Economics, Stony Brook University, Stony Brook, NY M.S., Computer Science, Stony Brook University, Stony Brook, NY

Awards and Honors
B.A. with Honors, Economics, Stony Brook University, Stony Brook, NY

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