It took me several weeks to figure out that I could shift available credit from higher APR cards to lower APR cards. So I wanted to write a specific thread about my experience for any other reader looking to lower interest expenses as part of a plan to eliminate CC debt...
The goal, or at least my goal, is to get roughly $50k of credit card debt paid off (the whys and wherefores have been discussed in a different thread in these forums). Each quarter, I make payments totaling $5k to $8k, of which roughly $2k covers interest expense and the rest reduces balances. (I know, it makes my stomach hurt too). If only my balances were on lower APR cards...
I have a 22% APR card and a 13% APR with BofA, and a 22% APR and 15% APR card with Chase. In both cases, after having created slack on the higher APR cards from pay downs, I called BofA and Chase and had $7500 of available credit transferred from the higher APR card to the lower APR card. This thread is to simply emphasize the value of calling the banks and getting available credit reallocated. Both banks, after a soft pull and getting updated on my current income, accommodated me quickly. I don't know if it helped their decision process, but it helped me to be able to point to significant pay downs on the high APR cards and to the fact that I have never had any delinquency in my credit history.
I have potentially saved myself 8 percentage points of interest on $15k of debt over then next 12 months, which is better than a poke in the eye with a sharp stick. In other words, I cut my interest expense by $300 per quarter or 15%. After my FICO improves a little, I plan to get another card or two and take advantage of 0% interest / balance transfers. But first things first: get my balances and interest expenses down right now.
The goal, or at least my goal, is to get roughly $50k of credit card debt paid off (the whys and wherefores have been discussed in a different thread in these forums). Each quarter, I make payments totaling $5k to $8k, of which roughly $2k covers interest expense and the rest reduces balances. (I know, it makes my stomach hurt too). If only my balances were on lower APR cards...
I have a 22% APR card and a 13% APR with BofA, and a 22% APR and 15% APR card with Chase. In both cases, after having created slack on the higher APR cards from pay downs, I called BofA and Chase and had $7500 of available credit transferred from the higher APR card to the lower APR card. This thread is to simply emphasize the value of calling the banks and getting available credit reallocated. Both banks, after a soft pull and getting updated on my current income, accommodated me quickly. I don't know if it helped their decision process, but it helped me to be able to point to significant pay downs on the high APR cards and to the fact that I have never had any delinquency in my credit history.
I have potentially saved myself 8 percentage points of interest on $15k of debt over then next 12 months, which is better than a poke in the eye with a sharp stick. In other words, I cut my interest expense by $300 per quarter or 15%. After my FICO improves a little, I plan to get another card or two and take advantage of 0% interest / balance transfers. But first things first: get my balances and interest expenses down right now.