By Wendy Mihm | Tuesday, December 14, 2010
When my website comes up in conversation, people often ask me if transferring their credit card debt to a low-interest rate credit card is really that big a deal.
In short, the answer is yeah, baby!
But rather than relying on me to convince you, let’s let the numbers talk. We’ll do a little quick math to illustrate the point.
Let’s say you have an $8,000 balance on a credit card with a 17% rate, and you pay $250 toward the balance each month. It will take you 43 months to pay if off, and you’ll pay $2,733 in interest.
If you transferred that balance to a card with 8% interested and paid it off at the same $250 per month, it would take you 37 months to pay off the balance and you would pay $1,028 in interest.
That’s a savings of 6 months time and $1,705.
Not chump change.
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