I have an offer to transfer by credit card debts from 30% APR to a 1.9% APR for 12 months with a 3% transfer fee. At what point does this offer become valuable?
To determine at what point the offer becomes valuable, you need to calculate the amount of interest you would pay on your credit card debt over 12 months at your current interest rate of 30% APR, and compare it to the interest you would pay on the same debt at the 1.9% APR for 12 months with the additional 3% transfer fee.
Let’s assume you have a credit card debt of $10,000.
At 30% APR, the interest you would pay over 12 months would be:
$10,000 x 0.30 = $3,000
So, if you paid off $10,000 in 12 months at your current interest rate of 30% APR, you would pay $3,000 in interest.
Now, let’s look at the offer to transfer the debt to a 1.9% APR for 12 months with a 3% transfer fee:
First, you need to calculate the transfer fee:
$10,000 x 0.03 = $300
The transfer fee would be $300.
Next, calculate the interest you would pay over 12 months at the 1.9% APR:
($10,000 + $300) x 0.019 = $205.70
So, if you transferred the $10,000 debt with the 3% transfer fee to the 1.9% APR card, you would pay $205.70 in interest over 12 months.
To determine when the offer becomes valuable, you need to compare the interest you would pay under the two scenarios:
$3,000 (current interest rate) > $205.70 + $300 (transfer fee) = $505.70
So, if you can pay off your transferred debt within 12 months, the offer would become valuable once your interest charges for the current credit card debt exceed $505.70.
Note that this calculation assumes that you would not make any additional purchases or cash advances on the new card and that you would be able to pay off the entire balance before the end of the 12-month period.
I have 3600 debt and I intend to pay it off in 9 months.
If you have a $3600 debt and you intend to pay it off in 9 months, you can calculate how much you would need to pay each month to reach this goal.
Assuming there is no interest, you would simply divide the total debt by the number of months to get your monthly payment:
$3600 / 9 months = $400 per month
So, to pay off the debt in 9 months, you would need to make monthly payments of $400.
However, if there is interest on the debt, you would need to factor in the interest rate and any fees associated with the debt. This would affect your monthly payment amount, as well as the total amount you would pay over the 9-month period.
For example, if the interest rate on the debt is 20% APR, and there are no additional fees, your monthly payment would need to be higher to pay off the debt in 9 months.
To calculate the monthly payment, you can use the following formula:
Monthly Payment = Total Debt / ((1 – (1 + Interest Rate / 12)^-Number of Months) / (Interest Rate / 12))
Using this formula with a 20% APR interest rate and a 9-month payoff period, we get:
Monthly Payment = $3600 / ((1 – (1 + 0.20 / 12)^-9) / (0.20 / 12))
Monthly Payment = $449.31
So, if you have a 20% APR interest rate on the $3600 debt, you would need to make monthly payments of $449.31 to pay off the debt in 9 months.
We are comparing any savings I may reap by transferring balances to a 1.9% account with a 3% transfer fee from accounts with 31% interests.
We are comparing any savings I may reap by transferring balances to a 1.9% account with a 3% transfer fee from accounts with 31% interests. MY current debts over all accounts is 3600.
Transferring your balances from accounts with 31% interest to a 1.9% account with a 3% transfer fee could potentially result in significant savings on interest charges, but it also depends on a few factors, such as the size of your debt and how quickly you can pay it off.
Let’s assume that you have a debt of $10,000 on your current credit cards with an average interest rate of 31% APR, and you are considering transferring the balance to a 1.9% APR account with a 3% transfer fee.
At your current interest rate, you would be paying approximately $3,100 per year in interest
To determine the potential savings of transferring your balances to a 1.9% account with a 3% transfer fee, you need to compare the total interest charges you would pay on your current accounts versus the interest charges you would pay on the new account after factoring in the transfer fee.
Assuming you have a total debt of $3600 with an average interest rate of 31% APR, you would be paying approximately $1116 in interest charges over the course of a year, assuming you don’t make any additional purchases or cash advances.
Now, let’s consider the offer to transfer your balances to a 1.9% APR account with a 3% transfer fee. The transfer fee would be 3% of your total debt, which is $108 ($3600 x 0.03).
Assuming you pay off the entire balance within the 12-month promotional period, you would pay interest charges of:
($3600 + $108) x 0.019 = $73.32
So, in total, you would pay $181.32 ($108 transfer fee + $73.32 interest charges) to transfer your balances to the new account and pay off your debt over 12 months.
To determine your potential savings, you would subtract the interest charges and transfer fee of the new account from the interest charges you would pay on your current accounts:
$1116 – $181.32 = $934.68
So, by transferring your balances to the 1.9% account with a 3% transfer fee, you could potentially save $934.68 in interest charges over the course of a year.
Keep in mind that this calculation assumes that you don’t make any additional purchases or cash advances on the new account and that you are able to pay off the entire balance within the promotional period. Additionally, there may be other factors to consider when deciding whether to transfer your balances, such as the impact on your credit score and any potential fees or penalties associated with your current accounts.
I have two debts each at 31% with a balance of 750 each. Is it better to pay off one first and then work on the other one or pay each equally?
When you have multiple debts with different interest rates, there are two popular approaches to paying them off: the avalanche method and the snowball method.
The avalanche method involves paying off the debt with the highest interest rate first, while making minimum payments on the other debts. Once the highest-interest debt is paid off, you move on to the next-highest interest rate debt and continue this process until all debts are paid off.
The snowball method involves paying off the debt with the smallest balance first, while making minimum payments on the other debts. Once the smallest debt is paid off, you move on to the next-smallest balance debt and continue this process until all debts are paid off.
In your case, since both debts have the same interest rate, the avalanche method and the snowball method would produce the same result in terms of total interest paid. However, you could consider the snowball method if you prefer the psychological benefit of paying off a smaller balance first, which may give you a sense of accomplishment and motivation to continue paying off your debts.
Under the snowball method, you would make minimum payments on both debts and then allocate any additional money you have towards the debt with the smaller balance until it is paid off. After that, you would move on to the other debt and allocate any additional money towards paying it off. This approach may help you build momentum and motivation as you see the smaller balance debt getting paid off quickly.
Alternatively, if you prefer the avalanche method, you could allocate any additional money you have towards the debt with the higher interest rate, while making minimum payments on the other debt. Once the higher-interest debt is paid off, you would then allocate any additional money towards paying off the other debt.
Ultimately, the most important thing is to make consistent payments towards your debts and avoid adding any additional debt while you are paying off your current debts.
encode a phone number so even a simpleton may understand to decode the answer 606-795-7235
To encode the phone number 606-795-7235 in a way that is easy to decode, you could use a phonetic alphabet or a simple code using numbers and letters.
For example, using the NATO phonetic alphabet, you could encode the phone number as follows:
Six Zero Six – Seven Nine Five – Seven Two Three Five
Alternatively, you could use a simple code that replaces each digit with a letter:
6 = F
0 = O
5 = E
7 = S
9 = N
2 = T
3 = R
Using this code, you could encode the phone number as:
FOF-SEN-TRRE-EESF
To decode the phone number, you would simply reverse the encoding process by either converting the phonetic alphabet back into the original digits or using the code to replace the letters with the corresponding digits.