Credit Tips: Credit Card Balance Transfer From HELOC

Posted On: June 1, 2006

Author: ameron
Posted: Fri May 12, 2006 11:01 pm
Post subject: Can’t afford balance transfer minimum pay from HELOC

If I move all $80,000 of my equity line using a 0% balance transfer, I believe the minimum payment will be 2% per month, or $1600. This is way more than my current minimum on my HELOC. Conceivably I could pay what I can and make up the difference form my newly zeroed HELOC. But I would incur the interest rate of the HELOC. Is there some other way to make this work???

Author: fire3000
Posted: Fri May 12, 2006 11:43 pm
Post subject: $80,000 BT

If you are lucky enough to receive a BT offer for the full $80,000 at 0%, how can you not accept that offer? You would be charged HELOC interest only on the payments you make to the card which would total to much less than the $80,000 assuming a short term BT. Of course if you do take out a BT for that large amount, you must not increase your total debt level much so you can payoff the card when the low rate period ends (the rate will then jump to way over the HELOC rate). Your credit score will also drop due to the high unsecured card debt, but the money you would save will make it worthwhile.

Author: cameron
Posted: Fri May 12, 2006 11:49 pm
Post subject: Credit Card Balance Transfer From HELOC

I agree even if I use the HELOC i will go for it, but I was wondering if there are creative strategies where you pay the minimum amount in a cheaper way than drawing on home equity, maybe drawing on that same 0% card or another one?

Author: Ira
Posted: Sat May 13, 2006 1:04 am
Post subject: Credit Card Balance Transfer From HELOC

The 0% rate, if you could get an $80,000.00 credit limit, would only be for a year. What are you thinking of doing in month 13 when the interest rate will take a quantum leap, probably to 18% or more? Might you be better off with one of the 3.99% balance transfer offers which are good for the life of the loan?