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The dirty secret about balance transfers

Balance transfers…

Recently my client reached out to me to see if it made sense to transfer one of her largest debts $15,300 to a 0% interest credit card. She checked with me to see if it was a GREAT decision or just “girl math”

I laughed!

There was a fee of $340 for the transfer, and she has 0% interest for 18 months. She is paying 15% interest now. We did the calculations and discovered that in 2 months, she would more than cover her interest she’s currently paying, and then start making bigger strides on the principle.

BUT was that the best decision?? 

I knew her situation, (we’ve been working together for the past 3 months). I had a good feeling I knew what her plan was by the end of 18 months, but I needed to hear it from her to solidify her OWN decision to make this move. So I asked the following questions.

→ If it is not paid off by that 18 month mark, what is your plan now that the interest will be 29.99%?
→ Is she just moving money or does this change really affect her money behavior?
→ What will her new debt free date be with this decision? 

Her decision was to keep the payment EXACTLY the same as it is now…(hey, the number is already in her budget)! 

She is planning to use her bonus to pay it off even sooner. 

She did not change her payment plan on the debt, and is continuing to apply pressure to get the needle to move faster now that ALL of the payment is going toward principal.

Debt payoff date? Well, it’s 3 months sooner than planned! (The savings will be in interest OBVIOUSLY, but she will then have an additional $400 a month in her cash flow a month!!

It was a win/win situation, and she felt so good about it. She had the ability to just reach out to me with a phone call to run the scenario, and take MASSIVE action. If that is the guidance you are looking for, reach out to to book a free consultation!

See you on the other side of transformation!