Current Situation
Pay interest on cc
Out (CC interest):
$4000 x 8% = $320/yr = $26.66/mo
In (savings acct interest)
$4000 x 5% = $200 = $16.66/mo
Net (before Taxes)
-$10.00/mo
At the end of 12 months these two accounts will cost you
$120, and you’ll still owe $4000.
Fix #1
Pay off cc with savings
Out (cc interest)
0
In (savings interest)
Month 1 = $26.66 +$0.11 = $26.77
Month 2 = 53.43 + 0.22 = 53.65
Month 3 = 80.31 + 0.33 = 80.64
Month 4 = 107.3 + 0.45 = 107.75
Month 5 = 134.41 + 0.56 = 134.97
Month 6 = 161.63 + 0.67 = 162.3
Month 7 = 188.96 + 0.79 = 189.75
Month 8 = 216.41 + 0.90 = 217.31
Month 9 = 243.97 + 1.02 = 244.99
Month 10 = 271.65 + 1.13 = 272.78
Month 11 = 299.44 + 1.25 = 300.69
Month 12 = 327.35 + 1.36 = 328.71
Net (before Taxes)
+328.71
you can have a swing of almost $450 before taxes. And if you have an emergency you can then dip into your $17k credit line.
thanks alot buddy. The problem is that i dont have 4grand in my savings to dip into to pay off my cc. Its not like my cc debt is killing me, but i would just like to find a card i can transfer my balances to (0% for 12mo), and then chip away at paying off that debt. Also a card that allows for great cash back rewards.
Im thinking about the american express blue card....anyone else use this or recommend something else?
thanks