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Old 5th November 2005, 11:48 AM
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AndersB AndersB is offline
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Join Date: Sep 2005
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Quote:
Originally Posted by NM
Well maybe I will just write a $1000 cheque to myself, bank it into my savings account and BPay it back to Citibank to avoid paying interest.
This is probably not a good idea if you have debt at the the low balance transfer rate.

It seems to work like this: let's say you have balance transfer debt of $4000 at 4.9% (for the life of the debt they claim). You then use another $1000. The debt is now $4000 @ 4.9% + $1000 @ 15% (or thereabouts). When you pay back the $1000, it will reduce the original balance transfer debt.

So the end result will be $3000 @ 4.9% and still $1000 @ 15%

I didn't read the fine print so they got me on that one.
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