Comments on: Balance Transfers http://myfinancialjourney.com/archive/balance-transfers Wed, 16 May 2012 14:32:55 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: My Financial Journey http://myfinancialjourney.com/archive/balance-transfers/comment-page-1#comment-105 My Financial Journey Thu, 03 Aug 2006 02:13:52 +0000 http://www.myfinancialjourney.survivingkids.com/archive/balance-transfers#comment-105 I also haven't considered talking to my bank, but with it only being $6k, I consider it a short-term debt that I hopefully won't have for much more than a year or two at most so I figured it would be easier dealing with the CC companies vs the bank, especially since the bank my loan is through I have never corresponded with and just went with them because they had the lowest rate. Also despite having my main mortgage at a fixed rate most people I talked to said I couldn't get a fixed HELOC, anyway like I said I wasn't too concerned because I viewed this as a short term debt, but at same time if I manage it a little better I can save updwards of $500 /yr. Anyway thanks for the great suggestions. I'm still looking for the best route that will have the least negative consequences for my credit score and my finances. I also haven’t considered talking to my bank, but with it only being $6k, I consider it a short-term debt that I hopefully won’t have for much more than a year or two at most so I figured it would be easier dealing with the CC companies vs the bank, especially since the bank my loan is through I have never corresponded with and just went with them because they had the lowest rate. Also despite having my main mortgage at a fixed rate most people I talked to said I couldn’t get a fixed HELOC, anyway like I said I wasn’t too concerned because I viewed this as a short term debt, but at same time if I manage it a little better I can save updwards of $500 /yr.

Anyway thanks for the great suggestions. I’m still looking for the best route that will have the least negative consequences for my credit score and my finances.

]]> By: Hazzard http://myfinancialjourney.com/archive/balance-transfers/comment-page-1#comment-104 Hazzard Thu, 03 Aug 2006 00:52:10 +0000 http://www.myfinancialjourney.survivingkids.com/archive/balance-transfers#comment-104 Have you considered calling your bank and asking them if they can lower your rate and lock it in? Maybe tell them that you are considering moving the debt somewhere else cheaper. I agree with you that the 0% game would be nice, especially if you could pay it off in 12 months. Have you considered calling your bank and asking them if they can lower your rate and lock it in? Maybe tell them that you are considering moving the debt somewhere else cheaper.

I agree with you that the 0% game would be nice, especially if you could pay it off in 12 months.

]]> By: My Financial Journey http://myfinancialjourney.com/archive/balance-transfers/comment-page-1#comment-103 My Financial Journey Wed, 02 Aug 2006 23:49:51 +0000 http://www.myfinancialjourney.survivingkids.com/archive/balance-transfers#comment-103 Thanks for the ideas on the fixed rate credit card transfers, completely forgot about that option. Interest rate on HELOC is variable.....currently its at 8.75% and I'm in the 15% tax bracket, so I know I can do better than just leaving it as is. As far as side business that's definitely crossed my mind, but that won't happen until I get rid of the HELOC debt and start hording up more cash. I looked at rental properties pretty seriously for a while, but return vs time/money didn't seem to do it for me at this point. Don't know that I would consider anything other than retirement accounts until I get to the point where I am maxed at Roth 401k and both my and my wife's Roth IRAs Thanks for the comments though, great advice and you definitely got me thinking about more options available to me. Thanks for the ideas on the fixed rate credit card transfers, completely forgot about that option.

Interest rate on HELOC is variable…..currently its at 8.75% and I’m in the 15% tax bracket, so I know I can do better than just leaving it as is.

As far as side business that’s definitely crossed my mind, but that won’t happen until I get rid of the HELOC debt and start hording up more cash. I looked at rental properties pretty seriously for a while, but return vs time/money didn’t seem to do it for me at this point. Don’t know that I would consider anything other than retirement accounts until I get to the point where I am maxed at Roth 401k and both my and my wife’s Roth IRAs

Thanks for the comments though, great advice and you definitely got me thinking about more options available to me.

]]> By: Rich Slick http://myfinancialjourney.com/archive/balance-transfers/comment-page-1#comment-102 Rich Slick Wed, 02 Aug 2006 14:02:21 +0000 http://www.myfinancialjourney.survivingkids.com/archive/balance-transfers#comment-102 Well I can think of a couple of alternatives but they depend on what interest rate you're paying on on the HELOC. Alternative 1 - Why settle for 0% for 12 months when you could possibly have 3.99% forever? Some credt card companies like Chase & Discover are offering 3.99% for the life of the loan. If you don't anticipate paying it off in 12 months then you're best bet is to pay the 3.99% over a longer period - say 24 to 36 months. Of course, this becomes counterproductive if your Heloc is at 5% or so since you're not really gaining much. Alternative 2 - HELOC loan interest, in theory, is tax deductable - have you calculated the benefit of this vs. not having it on credit card? Alternative 3 - It appears to me that you're too top heavy into retirement accounts. If you have that much spare cash you should consider a side business (rental properties come to mind). You could then create another retirement account under that entity and shelter some more income vs. the Roth. Well I can think of a couple of alternatives but they depend on what interest rate you’re paying on on the HELOC.

Alternative 1 – Why settle for 0% for 12 months when you could possibly have 3.99% forever?

Some credt card companies like Chase & Discover are offering 3.99% for the life of the loan. If you don’t anticipate paying it off in 12 months then you’re best bet is to pay the 3.99% over a longer period – say 24 to 36 months. Of course, this becomes counterproductive if your Heloc is at 5% or so since you’re not really gaining much.

Alternative 2 – HELOC loan interest, in theory, is tax deductable – have you calculated the benefit of this vs. not having it on credit card?

Alternative 3 – It appears to me that you’re too top heavy into retirement accounts. If you have that much spare cash you should consider a side business (rental properties come to mind). You could then create another retirement account under that entity and shelter some more income vs. the Roth.

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