Comments on: Reader Question -Should I Pay Off My Car Loan With A 0% Interest Credit Card? http://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/ A place to discuss money...for the rest of us. Fri, 10 Feb 2012 05:21:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Debt Consolidation Service: Is It A Good Option? | Mortage Refinance Advicehttp://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-34569 Debt Consolidation Service: Is It A Good Option? | Mortage Refinance Advice Wed, 14 Oct 2009 13:29:18 +0000 http://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-34569 [...] Reader Question -Should I Pay Off My Car Loan With A 0% Interest Credit Card? Got a question yesterday from one of the readers: I currently have about $11,000 left on my car loan at around 7% interest, but was thinking of getting a 0% balance transfer and paying it off. I understand that after the 0% period ends I will have to find another…… [...] [...] Reader Question -Should I Pay Off My Car Loan With A 0% Interest Credit Card? Got a question yesterday from one of the readers: I currently have about $11,000 left on my car loan at around 7% interest, but was thinking of getting a 0% balance transfer and paying it off. I understand that after the 0% period ends I will have to find another…… [...]

]]> By: Key Tips When Doing Debt Consolidation | Mortage Refinance Advicehttp://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-34568 Key Tips When Doing Debt Consolidation | Mortage Refinance Advice Wed, 14 Oct 2009 13:28:57 +0000 http://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-34568 [...] Reader Question -Should I Pay Off My Car Loan With A 0% Interest Credit Card? Got a question yesterday from one of the readers: I currently have about $11,000 left on my car loan at around 7% interest, but was thinking of getting a 0% balance transfer and paying it off. I understand that after the 0% period ends I will have to find another…… [...] [...] Reader Question -Should I Pay Off My Car Loan With A 0% Interest Credit Card? Got a question yesterday from one of the readers: I currently have about $11,000 left on my car loan at around 7% interest, but was thinking of getting a 0% balance transfer and paying it off. I understand that after the 0% period ends I will have to find another…… [...]

]]> By: » Money Mistake Monday - Owe More Than It's Worth Syndrome. Finance Guidehttp://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-25309 » Money Mistake Monday - Owe More Than It's Worth Syndrome. Finance Guide Tue, 11 Mar 2008 21:08:19 +0000 http://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-25309 [...] Reader Question -Should I Pay Off My Car Loan With A 0% Interest Credit Card? [...] [...] Reader Question -Should I Pay Off My Car Loan With A 0% Interest Credit Card? [...]

]]> By: Money Carnivals And Festivals I Missed Mentioning While I Was Away. | My Two Dollarshttp://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-19626 Money Carnivals And Festivals I Missed Mentioning While I Was Away. | My Two Dollars Thu, 30 Aug 2007 19:05:28 +0000 http://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-19626 [...] of Debt Reduction is up over at Mighty Bargain Hunter. My article about paying off a car loan with a 0% interest credit card balance transfer was [...] [...] of Debt Reduction is up over at Mighty Bargain Hunter. My article about paying off a car loan with a 0% interest credit card balance transfer was [...]

]]> By: Clever Dudehttp://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-19421 Clever Dude Tue, 28 Aug 2007 12:19:40 +0000 http://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-19421 I put the remaining $12,000 from our car on our 0% card for 8 months and paid it off a month early. However, as many of you already said, you need to be very diligent with your finances. I made sure we had ample room in the budget to pay it off on time (or early), even if we were hit with an emergency. I put the remaining $12,000 from our car on our 0% card for 8 months and paid it off a month early. However, as many of you already said, you need to be very diligent with your finances. I made sure we had ample room in the budget to pay it off on time (or early), even if we were hit with an emergency.

]]> By: Syedhttp://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-18877 Syed Wed, 22 Aug 2007 18:46:49 +0000 http://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-18877 Nice article, but I think there is a typo in point number 2, you might have typed 25000 instead of 10000. I figured that based on your calculations. I recently transferred nearly 11000 of auto loan @8.09% to my credit card at 0%. The biggest motivating factor for me was the $100+ interest they used to charge me on every monthly payment. But what enabled me to make the decision was that I have an emergency savings account with Amtrust with nearly 10000 in it so I can pay off the credit card debt when required. Hope this helps anybody present in a similar situation. -Peace Nice article, but I think there is a typo in point number 2, you might have typed 25000 instead of 10000. I figured that based on your calculations.

I recently transferred nearly 11000 of auto loan @8.09% to my credit card at 0%. The biggest motivating factor for me was the $100+ interest they used to charge me on every monthly payment.
But what enabled me to make the decision was that I have an emergency savings account with Amtrust with nearly 10000 in it so I can pay off the credit card debt when required.

Hope this helps anybody present in a similar situation.

-Peace

]]> By: Markhttp://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-18801 Mark Tue, 21 Aug 2007 23:43:45 +0000 http://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-18801 But if you pay off the car with the money sitting in an interest bearing account, wouldn't you then still (when it's all gone) have a paid for car and credit card debt from the balance transfer? But if you pay off the car with the money sitting in an interest bearing account, wouldn’t you then still (when it’s all gone) have a paid for car and credit card debt from the balance transfer?

]]> By: Lazy Man and Moneyhttp://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-18799 Lazy Man and Money Tue, 21 Aug 2007 23:27:45 +0000 http://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-18799 I wouldn't always exchange secured debt with unsecured. I'll take a secured debt of 5% over an unsecured debt of 25% any day of the week. MSMomsmoney has the right idea. Get the 0% credit card offer and put it in an online bank earning 5+%. This means you are effectively paying less than 2% on your car loan. It's not as great as a gain as if you paid off the car completely, but you don't run the risk of not being able to find another card or huge consequences from missing a payment. In short if you are going to money from a credit card at 0% interest, you want to access to money that can pay it off if necessary. I wouldn’t always exchange secured debt with unsecured. I’ll take a secured debt of 5% over an unsecured debt of 25% any day of the week.

MSMomsmoney has the right idea. Get the 0% credit card offer and put it in an online bank earning 5+%. This means you are effectively paying less than 2% on your car loan. It’s not as great as a gain as if you paid off the car completely, but you don’t run the risk of not being able to find another card or huge consequences from missing a payment.

In short if you are going to money from a credit card at 0% interest, you want to access to money that can pay it off if necessary.

]]> By: Stevehttp://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-18792 Steve Tue, 21 Aug 2007 21:45:15 +0000 http://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-18792 I've thought about doing the same thing, but I'm a little afraid of not being able to payoff the credit card at the end of the 0% offer. Just recently I took out a 0% BT credit card for arbitrage and even that is making me a bit nervous. I'm working hard on saving to payoff my car now, putting everything I can into a savings account that pays 5%. Once enough is in there I'll just pay the loan off. The interest rate on the car loan is 6.25% so I'm coming out a little behind by not putting extra directly to the loan. But I use the savings account as a temporary extra emergency fund so it's worth it to me. I think I can pay it off in a year but if I can't I don't want any credit card company getting my money. I’ve thought about doing the same thing, but I’m a little afraid of not being able to payoff the credit card at the end of the 0% offer. Just recently I took out a 0% BT credit card for arbitrage and even that is making me a bit nervous.

I’m working hard on saving to payoff my car now, putting everything I can into a savings account that pays 5%. Once enough is in there I’ll just pay the loan off. The interest rate on the car loan is 6.25% so I’m coming out a little behind by not putting extra directly to the loan. But I use the savings account as a temporary extra emergency fund so it’s worth it to me. I think I can pay it off in a year but if I can’t I don’t want any credit card company getting my money.

]]> By: Guesthttp://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-18766 Guest Tue, 21 Aug 2007 17:45:46 +0000 http://www.mytwodollars.com/2007/08/21/reader-question-should-i-pay-off-my-car-loan-with-a-0-interest-credit-card/#comment-18766 An auto loan secured by an auto can, in theory, be repossesed whereas an unsecured credit card is UNSECURED, i.e. no repossesion. Always exchange secured debt with unsecured debt and you'll come up a winner ;) An auto loan secured by an auto can, in theory, be repossesed whereas an unsecured credit card is UNSECURED, i.e. no repossesion.

Always exchange secured debt with unsecured debt and you’ll come up a winner ;)

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