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.

If your situation is that have more money going out on a montly basis than coming in, what do you do?

There two things you could! Three if you count doing nothing.

Make More Money or Spend Less.

Make More Money
First figure out what your shortfall is each month. Let’s say you need an extra $500 a month to loosen the collar. Some obvious ideas are are overtime at work, a side job, a simple side business, sell what you no longer need on Ebay, etc.

Spend Less Money
It’s very hard cutting back on certain luxuries we have grown accustomed, but sometime it’s necessary if only temporarily. Look closely at what goes out a make hard decisions. Do you need a $40 monthly gym membership or maybe you can exercise outside for free. Now this may be sacrilegious to some but if you’re in deep, what about your cable bill? Do you really need it? How much are you paying in credit card interest rates, moving debt to lower interest cards will lower your monthly payments, if onyl temporarily.

These are just a few ideas to kick start your brainstorming session. Why don’t you shut off the computer and take a yellow pad, with your favorite writing pen ( Very important, this makes a differnce in coming up with ideas), go to a quite place that’s comfotable and think of different wayss ot make some extra money or spend less money.  Write everytihng you can down. Don’t worry about how stupid it may seem or that this will take along time to implement. You just want to write at this stage.

Here are some questions to hep you start your personal brainstorming session.

• What are you passionate about?
• What skills do you possess?  Think hard, everyone has skills that are needed by someone, just think!
• What needs are out there, where you live,  that aren’t being filled?
• Who do you know that you can barter a service? ( Bartering services can be sold)
• Who do you know that can help you locate a part or full time job, or business? (A client of mine started his business by being available to helping out a customer he was caddying. Now he provides a unique service for clients driving there.)

You can probably save or make a few hundred extra each month without too much pain, you just have to think about it objectively, which isn’t always the easiest thing to do.