Sorry if you can see this message twice. I thought I'd posted it but then it didn;t appear. I'd much appreciate any input/advice on this decision:
After buying a house with cash I find myself 7,000 in the red, which is now on a credit card, charging me about 15% APR. I've been offered a choice of 2 different balance transfer rates on another of my credit cards: 6.9% (until paid off in full). or 0% (for 12 months). 7,000 is within my credit limit on this card.
But which offer should I choose? If I could be fairly sure that I'd get another 0% offer soon after the first one expires, ad infinitum, I'd go for the 0% offer.
But what might the furure hold? Could future 0% offers from CC companies become scarce before the coming 12 months expires? If so, I'd probably be better off with the "6.9% till paid off" option, yes? Having the "6.9% till paid off" option would give me a little extra certainty about where I stand, in that I don't have to worry about where the next offer might come from and what the rate will be.
There is another factor to consider. I currently have about 5 credit cards, most of which I don't use, except in a small way, just to keep the accounts alive. Since I originally got these cards, I have been unable to work such long hours due to a long-term disability. If the CC companies find out that my income has diminished, they may lower the limits on my cards, yes? If I become unemployed altogether, they could do even worse - in which case, I'd be better off going for the "6.9% till paid off" offer. Agreed?
I'm thinking that if I go for the 6.9% offer, I can always switch it to another card, should one of them offer me a lower "till paid off" offer. I had one such offer back in 2006 or so that was only around 4.9%. But are offers like this likely to come up again, bearing in mind the economic climate we face in the coming year or two? Are interest rates set to rise? And will this reduce the frequency of 0% balance transfer offers?
Obviously, the 0% for 12 months is attractive, because I'd pay off the capital faster (about 350 more in the first year, I think). But there seems to be perhaps more risk involved for the reasons I've touched on. What do you think?
There is just a possibility I could raise enough cash to pay off the loan at some point during the next year or two, but it's not certain.
Many thanks for any suggestions, insights or other input.
Al