0% Credit Card Transfers

I have read on many PF blogs than a 0% transfer could be one of the dumbest things you do. It can also be one of the smartest.

One of my favorite bloggers recently pointed out that many credit card companies that offer the 0% balance transfer will... wait for it.. charge you the FULL INTEREST from the transfer period if not paid off in full by the end of the promotional transfer period. Eeek! I'm fairly certain that mine isn't like that "only be charged interest on the unpaid portion" but they did just send out a new booklet with a ton of revised rules that I won't have the time to thoroughly read for some time. In my case, it could be $1000's in interest.

In December of last year, one of my two (maxed) credit card companies informed me that my interest rate was going up from 19.9% to 24.9%. The balance on this card was $8800. I was barely paying it down as it was! How on earth was I going to be able to afford an extra 5% interest? I had a second credit card with $2200 (also maxed) and did you know that you can be indebted to paypal? I owed about $550 to them, and had ranked up $200 in bank frees in the process. It feels like that time was a lot longer ago then a few months.

The first credit card I applied to for a balance transfer rejected me. The application to extend my line of credit wasn't going to be approved. Weeks passed. Feeling of failure and hopelessness increased. I kept researching and trying. Then, I got a letter saying I was approved for a balance transfer. I arranged to go get my new card, and quickly transferred $10,500 on it.

I was never supposed to put any purchases on this card, but I ended up making some major payments like yearly car insurance (which I need to start saving for) and medical bills. By putting over 50% on my income on debt, focusing on this card, I was a month away from the deadline and still owed over $4000, much over my monthly income and e-bay clothing selling side hustle. I was panicking, until I calculated taking a few extra months to pay off would only cost me $100 or so. Not worth the stress I was feeling.

Or... would it? Thanks to blondeonabudget.ca, I realized I might have to pay interest! I had no idea. And recently the fine print which I thought I had read had changed. My bank was/is becoming much less friendly. I had no idea if this applied to me or not. Paying off this card in 6 months was no longer about pride, but about the mighty dollar. Which lead to a month of crazy debt payment, lots of listing of my clothes, and crying. And lots of staring at my computer screen trying to figure out how to do it.

I'm about to get my final paycheck before the balance is due. And, by putting 70% of it on my credit card, I think I'll do it! I need to see that balance hit bottom. It will be time to celebrate! But frugally :)