Wednesday, October 27, 2021

Low-rate money for life--what do I do?
by Scott Bilker
Scott Bilker is the author of the best-selling books, Talk Your Way Out of Credit Card Debt, Credit Card and Debt Management, and How to be more Credit Card and Debt Smart. He's also the founder of DebtSmart.com. More about and DebtSmart can be found in the online media kit.

Scott Bilker

Dear Scott,

I constantly call my credit card companies to find out about special deals.

Any credit card debt I have is at either 3.9% or 4.9%, I have about $1,500.00 at 5.9%. All are for the life of the loan.

I called Citibank and they are offering 3.9% for the life of the loan, I called AT&T (which is owned by Citibank) and they are offering a comparable rate for the life of the loan.

I do not need the money now so I am waiting until the offer expires.

When I ask when the offer expires, sometimes both companies say 9/17. Other times they tell me they do not know, and they try to encourage me to make to make a transfer immediately.

In neither case have either company mailed me an offer, it has all been over the phone.

My question is with interest rates going up, is it safe to wait until September, or should I make the transfer right away?

Jesse

Jesse,

Shedding debt means saving money. The easiest way to save money on debt is to reduce the interest rate by transferring balances.

Continually calling your credit card companies to learn about special deals is one of the most DebtSmart® strategies! What many people don't realize is that they may have a great offer available, right now, even though they haven't received anything in the mail.

It seems that you're doing a great job with your current debts. The highest rate is a fixed 5.9%. You did say that you don't need the 3.9% fixed deal now however, you could use that to reduce the cost of the 5.9% loan--that's what I would do.

You may be thinking, "If I transfer my balance then I'll lose that 5.9% fixed deal." It's okay to lose that because you're saving money. You know that you'll get more offers in the future, especially from that 5.9% card that you just paid off. I'll bet they'll send you out a new low-rate offer within two weeks after you pay them off.

The strategy is always to take advantage of your best credit offers today. Transfer to your lowest rates now. Don't wait.

Good luck!

Regards, 
Scott


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