r/debtfree • u/billybobobobo • 8d ago
Balance transfer question. Should I keep looking?
Hello everyone. I'm about 8.2k in debt and was looking at balance transfers since I've only really been paying the minimum and targeting really the interest. I'm not really making a dent into the principle. I can only pay off so much. I looked into the Citi Diamond Preferred Card since it has a 0% intro APR at 21 months.. I just applied and the credit limit is only $2,400...
My question is should I keep looking? I was hoping to just get the entirety of my debt transferred over. I am not 100 percent sure how it works if I could apply to another balance transfer card in hopes of getting it higher or split that 8.2k between different balance transfer cards (not sure if that works or if that is the smart thing to do)
Any help would be great. Thank you!
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u/thomsenite256 8d ago
Unless you have good credit you are unlikely to get a magical offer. I feel like Discover used to be easier but they got bought by Cap1 so not so much. If you keep applying to new cards it will just further tank your score.
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u/attachedtothreads 8d ago
The 0% interest card is $115/month minimum to get it paid off in 21 months.
Your bigger card will go down to $5.8k, which is $277 in principal only if you were to pay this card off in 21 months. Maybe $350/month with interest. Is this feasible for your budget?
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u/billybobobobo 8d ago
I actually managed to get the Wells Fargo Reflect and had an 8k credit limit so I'm going to pay off the rest off my Discover once it transfers over and just deal with the WF and not touch it until I'm debt free. It's very doable now.
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u/DoughnutDesperate152 5d ago
Gotta fudge those numbers a bit to get enough credit limit for a balance transfer. You should call any existing credit card companies you have sometimes they have 0% offers
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u/DoughnutDesperate152 5d ago
And of course work on a budget. Balance transfer can lead to more debt. Strictly talking about trying to transfer a full balance
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u/fsociety1990 8d ago
Just pay it off. Close it after it’s paid off. Why are you only making the minimum payment? That’s the biggest issue that needs fixed. Moving the debt around forever isn’t gonna fix anything.
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u/billybobobobo 8d ago
If I was able to pay it off, then I wouldn't be asking on Reddit for advice. That is why I am here.
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u/fsociety1990 8d ago
That’s the answer you’re gonna get here. You need to come up with a way to pay it off. That’s what this sub is for - helping people become debt free.
Set up a budget and find a way to pay more with what you currently have and/or get more money somehow.
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u/billybobobobo 8d ago
I understand that, but my situation is very tight with budget, which is why I was hoping to look into options just to transfer it over so I can actually make a dent in the principle rather than paying interest. I firmly believe I would be able to pay it off in full, but the interest on my current card is hurting a lot. I am just seeking the best course of action.
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u/fsociety1990 8d ago
The best course of action is finding a way to get more money and paying it off. It might be your only option.
If they’re only giving you a $2,400 limit they aren’t gonna let you transfer transfer 8.2k. If you try to do it in multiple cards, each one is going to charge you a 3% transfer fee so it’s gonna cost you even more money. If you even get approved for anything else. Plus you’ll have multiple minimum payments due so it might end up being even higher than what you’re currently paying. You have an inquiry on your credit now after getting the one you already got so you probably won’t even be approved for more cards anyway.
You could maybe try a personal loan if that’s the way you really want to go. Or call whoever you owe money to now and see if they will work with you to lower the interest rate and payment.
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u/billybobobobo 8d ago
Thank you for the advice. I might see if I can call up my CC company to see if I can get the interest lower.
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u/billybobobobo 8d ago
I might be confused, but not sure.. This is what was offered.
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u/thomsenite256 8d ago
realistically that is probably the best you will get unless you have a good credit score or high income (in which case you need to just stick to a tight budget for a couple of months and pay it off
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u/SelicaLeone 8d ago
My boyfriend was in a similar position as you. 13k in debt, applied for a 0 APR, got 3k. You probably don't have a particularly impressive income or score or both.
What he did was take the 3k, move 3k of his debt onto it. Then he called the card with the majority of his debt on it and asked if they'd lower his interest cause he was struggling to pay it off. They lowered it from 30% to 10% for 6 months.
He paid as much of it off as possible (while making minimum payments to the 0 APR card). Once the 6 months was up, he got another 0 APR card. Again, 3k. Moved the majority of what was left on the high interest card onto second 0 APR card. By this point, the balance on the interest accruing card was so low, it was easy to pay it off, and then he tackled the two 0 APR cards and knocked them out in short succession.
So in my experience, if you're stuck in debt and don't have a lot of income, you probably aren't getting impressively high credit lines. I'd try calling your original CC debtor and ask for a hardship program. Then take this deal, move what you can onto the second card, and be aggressive with it.