We are doing everything we can to reduce our debts. We snowball. We over pay. We get the best deals on everything we can, including interest rates. I am paying for my car, through Fiat Finance, at 13.9%! It’s a standard rate for car finance. My finance deal does not allow me to over pay. I pay each month or the balance; that’s the only choice I have. I am in a position to find a better deal and found a low rate card,with 5.9% on balance transfers for the life of the debt, where I could have easily have transferred the entire balance onto a low rate card. Infact, less than half the interest rate of my current finance deal. I applied and got the said ‘deal’. However, you don’t get the ‘small print’ until the paper work arrives.
I waited until the weekend, until I had time to sit down and read every word on the paper work. The ‘handling fee’ is 5%!!!! 0% credit card deals charge 3%!!! and this one is 5%! So thanks, but no thanks. I’ve not ‘activated the card’. I will not be transferring my car finance. I will wait a while and look for another 0% deal when I’ve paid off the current credit card I’m getting ‘rid of’. When ever you get ‘finance’ you need to wait at least six months until you apply again. It does not look good on your credit file otherwise. We now have really good credit scores (Fico scores) and can get credit any where. Nonetheless; you still have to scrutinise every word on the application or you can get stung. I know it’s still slightly less and I would be able to over pay; but I’ll still hold out for a better deal in six months time!
Even at the rates I am paying, by snowballing, I will be debt free by August 2012 and that is only 20 months away!