I have a credit card that is offering 0% for 12 months. After that, it goes up to 16%. I currently have a large balance on a different card with an interest rate of 12%, Because the balance is so large, the interest fees every month are making it a challenge to pay down the card with much speed. I could transfer a portion of the balance so that it is 0% for 12 months. But then in what order do I pay the debt down? Do I focus on the 0% and get rid of it while the other card sits there, accruing interest? Or do I get rid of the 12% interest card and just deal with the fallout of the BT card jumping up to 16% for awhile?
Just to make the numbers easy, lets say I transfer 10k to 0% and 10k is left on the card with 12%. There is a 3% fee to do the BT. And let's say I can pay down 1k/month over the minimums. The card that is offering the BT figures minimum payment as 2% of the balance. The other card figures it as 1% of balance + interest fee or 1.5 of balance, whichever is higher.
My brain just isn't working after the long weekend!