Archive for the ‘Debt Management’ Category
Simple Way to Save $100
Posted by admin | Filed under Budget, Credit Cards, Debt Management
A lot of people, myself included, are hesitant to use those credit card checks your friendly credit card company sends you regularly.
I just got an offer (I get an offer from them regularly) from Juniper for a balance transfer or any expense for 7.99% until July 2011 with a 4% fee (steep, I know)
While this offer kind of stinks, it still can save you money if you can’t pay it off in the next couple of months.
Here’s how?
I owe $900 on this card with a steep 22.99% APR which translates to about $18 a month in interest.
I have a recurring bill for $850 a month.
If I pay off the balance of the card at $900 from my bank account and use the credit card company check to pay the recurring bill look what happens.
There’s a 4% fee $850*4%=$36 divided by 10 ( months of savings until July 2011) = $3.60 fee/month
The interest rate is 7.99%*$850=67.91 in interest for the year or $5.66 monthly for a total of $9.26
So by doing this we go from $180 ($18 * 10 months) in interest and fees to $92.60 for a savings of $87.40 not counting the fact that if I continue to pay the same amount as before my debt is decreasing faster, which is certainly more that $13 saved in the next 10 months.
