Balance transfer!

I have taken advantage of a balance transfer that was offered to me on a credit card that I rarely use.  I was offered an interest rate of 1.99%  for six months.  There is also a 1% transaction fee which I asked if it can be waived.  The representative agreed to lower the fee to half so I saved almost $50 just by asking!!!  On a total transfer of just under $10,000, I will be saving about $260 over the next six months in interest charges! This is comparing to the interest costs that I would've paid if I had not done the balance transfer.  I am aware that having a balance on a credit card close to its credit limit can negatively affect my credit score.  In my case, I figured it was okay since I will not be seeking credit in 2012 and I have a good credit score.  To me, it is worth it since I can then put my interest cost savings to lower my debt.  Every bit counts!  I also will make sure to transfer the money back by the end of the promotional end date to avoid paying the regular high credit card interest rates.  I can not wait till I am rid of this debt and not have to worry about it any longer. 



Do you believe it is a good idea or not to do a balance transfer?

Low mortgage rates!!

I’ve been shocked by the low fixed interest rates on 4 or 5 year mortgages currently in Canada.  My understanding is that this is historical and didn’t think they could drop so low, especially slightly under prime!  I’ve been letting people know about this so they can see for themselves if it works for them to switch banks or negotiate with their current one.  In some cases, it could be worth paying the penalty and save a large amount of money.   In my case, my fixed rate is still on the low end since it is 3.79%.  I've started to look into seeing if it makes sense to switch to a different bank that is offering the 2.99% rate.  I know in my case it may not be worth it but there is no harm in finding out, right?  If you are thinking of switching or renewing to the 2.99% current offers, you would have to consider if there are conditions that the bank puts on the mortgage and if so, will be okay for your personal situation?  For example,  what if the bank includes the condition that you are unable to break your mortgage until the term is done, even if you sell your house.  In my case, I would not be able to lock into a 4 or 5 year mortgage that is too restrictive since I know that my life is still in 'change mode'.  More on what I mean by that in the posts to come.

Have you figured out if getting one of these low rates works out for you?

The debt confession.....

I have been struggling with a huge amount of debt since I finished my degree seven years ago, did some travelling and bought my own condo four years ago.  On September 1, 2010, I owed $43,678 in total (not including my mortgage)!  I have been bringing that amount down and today on January 15, 2012, I owe $26,201 (not including my mortgage).  Still a big amount! I have been following other personal finance blogs over the last year to learn how to become more frugal and continue being motivated to pay the debt and build up some savings as well.  Since many have shown that having their own blog has helped, I decided to create one as well which will show my journey into having freedom from debt.  I have learned to understand what mistakes I have made to get myself in this position and what to do to prevent it from happening again.

My goal for 2012 is to pay $15 000 towards my debt and to look at creating opportunities for more income apart from my full time job.  I also want to continue building up my savings to have $2000 more to have a total of $4000. 

Eventually I want to be able to know that the money I make is mine and not that I owe money from each paycheque to debt. 

How long will it take/has it taken you to pay down your debt?