Originally Posted by Connemara
Yeah, that's a good point. If I wanted to do the line of credit and pay it off within about a year, I'd have to pay around $125/mo.
I'm living at home right now so I could easily devote several hundred dollars per month to the CC balance. At that rate, I'd have it paid off in around 6 months. Maybe I should just work on paying it off ASAP.
The problem with the credit card deal is that they also have some very high penalties for late payments. that also insures that you are assigned to interest rate hell for several months.
Get the line of credit at the credit union. You might not even have a payment due date if you are below the credit line so no late charges. another option would be to call up the credit card operation and get them to lower your rate to 5%. I just got an offer for a zero rate card on both balance transfers and purchases for a year. BTW, most cards hit you with a balance transfer fee of 3% or 4% up front. If you consider that you are really going to pay the deal off in 12 months then the average balance will be 1/2 the beginning balance. so that a 4% fee upfront is the same as 8% computed monthly on the declining balance. And if you pay it off sooner then it is less. It would seem that you must have a balance of $2000 or so. Pay it in 4 months and be done with it. Thank your parents for the free rent that lets you do it as they will appreciate it.