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23 December 2002 @ 05:10 pm
Dammit, I was all set for that sense of accomplishment, too.  
I was just on the phone with Discover Card. Trying to cancel my account. It really would have been nice to get that off my chest. I mean, I never use the thing - it's primarily there for backup purposes and for balance transfers.

But I have this other card, see. It's really frustrating... Most of the balance on it isn't mine, and I'm being paid back for it. But right now it's at a really great APR - 4.7% for the next six months or so. So when the guy offered me 5.9% on balance transfers, I said no.

Then he said he could offer 5.9% for life, as long as I put one charge per month, as small as a stick of gum, on the card starting in June. Tempting, but I don't want to put any charges on the card - that's a huge part of the point.

Then he did the killer. He said wait until June and do the balance transfer then for another six month term or something, and the highest it'll be is 5.9%.

I'll need to do some math for this, but I think that turns out to be a good deal, even with the $50 balance transfer fees he didn't mention. This one'll go back up at that point, and the 4.7% will turn into 12.99%.

Hey, speedball, this should be a fun calculation for ya. How much balance would I have to have for the balance transfer (including $50 fees) to be worthwhile when switching from 12.99% annually to 5.9% annually? (If you really want to get into the calculus of it, you can include in your calculations that it's being paid off at a rate of $200 per month, but that might just make the whole thing complicated to a silly level...)


Anyway, he convinced me to hang onto the card in case it ends up being a good deal. Of course, if Speedball tells me it needs to be a $12,000 balance to be worthwhile in June, I'm calling the guy back.....
 
 
Current Mood: Defeated
 
 
 
Nentikobe - a work in progressnentikobe on December 23rd, 2002 06:42 pm (UTC)
you made my head hurt... I never was good with math...

(or credit cards, for that matter...)
Idtechnomonkey on December 23rd, 2002 07:00 pm (UTC)
Sorry - want some Excedrin?
I've always been good with the use of both math AND credit cards.


Which is to say, I always know how far in debt I am....
Kurt Onstadspeedball on December 29th, 2002 12:06 am (UTC)
You were probably looking for an answer to that question...
I haven't been reading LJ for a while. That will be changing starting today. Give me some time, and I'll get back to you on this...(Reply to this if I haven't already, to remind me...)

Kurt
Kurt Onstadspeedball on December 29th, 2002 01:10 am (UTC)
All right. Something of an answer...
Well, I wasn't clear on exactly what you were looking for, but here's some interesting information that should help you...

In another entry, you were talking about 3 years to pay things off, so I assumed that you were making 36 payments at $200 each. If that is true, then in that time, you could put $2959.38 on the 5.9% interest card, and be completely paid off at the end of those three years.

With a 13.9% interest credit card, making the same payments, you could only have $1425.47 on the card if you wanted it completely paid off in three years.

Does that help?

Kurt
Kurt Onstadspeedball on December 29th, 2002 01:23 am (UTC)
Oops.
Oops. It was 12.99%. Not 13.9%. That changes the second number to $1520.68 that you could completely pay off in 3 years...

Kurt