Should Disastrous-Ranger558 Spring for a 0% Credit Card Transfer?
Welcome to the debut of Financial Confessions: Overheard on the Web, a new feature where we share real stories from real people facing some serious financial conundrums. So grab your coffee, sit back, and let’s dive into this week’s tale from the web.
This time we’re tapping into the hive mind for our Reddit pal, Disastrous-Ranger558. Here’s the 411:
Disastrous-Ranger558 is staring down the barrel of a $14,000 personal loan, with about $270 of the $350 monthly payment being vacuumed up by interest (ugh, amirite?). They’ve got a pretty solid credit score of 745 and they’re planning to co-sign a lease with a friend (who also rocks a 740 credit score) for an apartment, starting July 1st. 👬🏠
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Here’s the plot twist: they got a tempting offer from their credit card for a balance transfer with 0% interest until June 2024, with a 3% fee. Basically, Disastrous-Ranger558 is mulling over splitting their loan between their existing account and this shiny new 0% credit card offer. The game plan would be to shell out $6,000 toward the loan and transfer $8,000 to the credit card.
Sounds like a savvy move, right? This strategy would save them nearly $3,000 in interest for the year and slice off the $350 monthly bill. It’s like scoring a front-row seat at Coachella without paying VIP prices. 🎵💰
But here’s where they need your help, Wellthi warriors. As the clock strikes June 2024, the balance on the card would be much lower, and they’re thinking of either paying it off or refinancing the loan into a smaller monthly payment. But there’s a question mark looming over how this might impact their credit score and their chance of securing the apartment.
So, what do you say, community? What advice do you have for our friend Disastrous-Ranger558? Will the balance transfer be a masterstroke or a potential pitfall? Are there other alternatives that they should explore?
Hit us back with your thoughts and advice in the comments below! 🙋♀️ Let’s help Disastrous-Ranger558 navigate this financial puzzle and come out the other side even stronger. After all, we’re all about turning “yikes” into “yes” here at Wellthi! 💪💰
You can download the Wellthi app here, and act by July 3, you could win $10,000 for just posting your financial goal in the app!
