“I currently have over $2,000 in credit card debt… Should I transfer it to a 0% APR card with a 3% fee?” How can I make the best financial decision?

Hi Money Minder,

I’m in a bit of a pickle with my finances and could really use your help. I currently have over $2,000 in credit card debt from loaning my card to my parents for a garage fix. Now, my other bank is offering to transfer this debt to a platinum card with 18 months of no interest.

But here’s the catch – after the intro period, the APR jumps to 18.24% to 29.24% and there’s a 3% transfer fee. I really want to boost my credit score and stop the late fees from piling up. Should I go for it? Any advice would be awesome. Thanks a bunch!

Cheers,
Helpless with Debt

Response from THE MONEY MINDER:

Hello There,

Hey there,

I understand the financial dilemma you’re facing, and I’m here to offer some advice that might help you navigate through this situation. Firstly, it’s commendable that you’re actively looking for ways to improve your credit score and address the credit card debt issue. Considering the offer from your other bank to transfer the debt to their platinum card with 18 months of no interest, there are some factors to consider.

While transferring the debt might give you a temporary breather from accruing interest, it’s essential to remember that a variable APR of 18.24% to 29.24% will apply after the introductory period. Additionally, there’s a 3% transfer fee which should be factored into your decision-making process. It’s crucial to weigh the pros and cons of the transfer and see if it aligns with your financial goals and capability to repay the debt within the interest-free period.

Given that you mentioned accumulating late fees due to increasing credit card balances, it might be worth exploring ways to tackle the existing debt systematically. Creating a budget, prioritizing necessary expenses, and allocating a portion of your income towards paying off the credit card debt could be a practical approach. By addressing the root cause of the problem and actively managing your finances, you can work towards improving your credit history and avoiding further late fees.

Remember, financial challenges can be daunting, but taking proactive steps towards resolving them is a positive step in the right direction. I hope this advice provides some clarity on your decision-making process. All the best from THE MONEY MINDER.