I currently have a $5,500 debt on a credit card with a 25% interest rate. I could easily pay off this debt within a year if there was no interest. I’m looking into applying for a card with a 6 month 0% interest rate. I have approximately $2,500 that I can put toward this debt right now. Is there any benefit to putting this money towards the high interest rate card I currently have? Or should I just wait until I have a card with low or zero percent interest? I’m not sure if I would be more likely to get a lower rate card if my current balance is lower.
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If you can apply those 2500 to the 5500 which would leave you with 3000 and then pay those 3000 in six months which the payments will be 500 a month before the introductory rate ends then I would say go for it. If not, a 6 month same as cash card is not worth it. Because if you don’t pay it off then you will get all interest accrued within the last six months. Try finding a 12 month 0% interest card. Im sure there is plenty of them out there.
One of the factors in your credit score is your debt to credit limit ratio. If your debt is lower, your ratio is higher and that’s a point in your favor. Also, a balance transfer is not free. You will be charged a transaction fee based on the amount you transfer. The less you transfer, the lower the fee.
I have met similar situation before.From my own experience,I would like to suggest you to get your debt cleared as early as possible,before it becomes a hard handle large snowball,here
http://www.DebtFreetips.info/debt-free.htm
is the resource that help me a lot.