Living on a Budget, Saving Money/debt reduction
Mr. West, I have 2 credit cards:
1. bal $4900 - int 13% - min due $87 - pay monthly $100
2. bal $7500 - int 10% - min due $134 - pay monthly $300
I recently was approved for a 21 month 0% card with a $5300 credit limit. My plan is to transfer card #1 to the 0% and put all the money I have been paying on BOTH cards(except for the min payment on card 2) on the 0% card. Once card 1 is paid off, I will then put $5300 of card 2 on the 0% card and do the same - only paying the min due on card 2 until the $5300 on the 0% card is paid. And continue this pattern until card 2 is paid in full. I have not charged on either of these cards in almost a year so I am not worried about adding to the balance. I just want to pay them off as quickly as possible. Does this seem like a reasonable plan? Thank you.
It is a reasonable plan, as long as you dont run the balance up on the ones you have transferred or the one you are paying off. I would cancel the one you transfer. Also make sure your necessities are paid before you send money to credit cards.I would also suggest that you build up a mini emergency fund of 1000.00, or 500.00, if you make less than 20k a year, so you will not use the credit cards if there is an emergency. I hope this helps.Keep working on it you will get there.