Mailbag Monday: Paying Off a Balance Transfer
Hi Jean. I recently transferred a portion of the balance on my higher interest credit card to a Slate 0% card. Is it better to focus on paying down the higher interest card or getting the balance on the 0% card paid off within the introductory offer period?
— Trish
Oh Trish! I have to tell you, I have thought of this question so many times and never, ever been asked it. In the best of all possible worlds, you’d transfer all your high interest rate debt to the Slate card, then wail on it at that 0% interest rate to make as big a dent in the teaser period as possible. (You did choose well when it comes to balance transfer cards, by the way — the 15 month 0% interest rate is just about as good as it gets.)
If that’s not possible, then we go with the math. Put all your extra dough toward paying off the highest interest rate credit card first then move onto the next highest and so on, while making minimum payments on the rest. And if you still have balances 15 months from now, start looking for another balance transfer deal.
