I have a few credit cards we are trying to pay off. One of my cc's sent me a blank balance transfer check. It is for 0.99% fixed until March 2008. There is a balance transfer fee of 3%. If I transfer $2000 from a 10.5% account would this be a good deal (transfer fee would end up being $60). I know I would be able to pay it off by March but I'm not sure if I will come out ahead. I'm sure there is some algebraic equation I could use to determine if this is a good deal or not. The answer is probably quite obvious but it's too early. Any financial whizzes out there?

I used to work as an agent taking credit card apps by phone for Bank of America. I used to do CC transfers all the time. Right now, your interest is around $200 a month as long as you have that $2000 sitting in that account needing to be paid every month! If you pay the $60 dollars, you'll be saving $140 dollars right away. Secondly, if you get 0.99% until March 2008 on the 2000, your interest a month drops to less than $20 a month on that balance! When you transfer, keep in mind you will only get that rate on what you transfer, not on your current balance. Make sure the penalty fees are not higher than your current interest rate. In most cases, you only keep the low interest rate if you pay on time! DO NOT MISS A PAYMENT! Your interest rate can go as high as 50% in penalties if you are even a day or so late.

If you can be sure you can pay on time and you can get your debt paid off before March 2008, I say go for it, it's a good deal. But, if you have income that fluctuates and you may not be able to get a payment in on time, I would procede with caution. Good luck and read the fine print on your offer.

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Not if its only good until March, 08. By time they do the transfer it'll be another month - so youre looking at only about 5 months at the low rate - and youre adding the $60 to your balance off the top. If it was a longer introductory period I would do it but since you think you can pay it off by March anyway, keep making your payments (add more if you could) and wait for a better offer. On the other hand, what does the rate incease to at the end - if its way less than the 10% youre paying now, then YES its worth it. If its more, then no.