Should I do this?

[geojen]

DH and I are currently working our snowball, focusing on paying off our ford focus wagon. The loan has a current balance of 5,100 at 7%. I received a balance transfer offer from citicard for 2.99% until 2010, with a max balance transfer fee of 99 dollars. That is a huge cut in interest, which would help to pay this thing off faster. Should I stick with the 7% fixed rate loan from the bank or take advantage of this offer?

[jIM_Ohio]

Faster is measured in how many months? I would leave the loan be because the cc transfer will have risks (miss a payment and rate increases) for a gain of maybe 1-2 months to pay off the car.

[kork13]

Another option, as many here have mentioned before, is to look at the 0% offers about... But as Jim said, sometimes it's just not worth it, unless you can guarantee that you can keep it under control. Also, how soon will you have the car paid off? How much does the interest go to if you miss a payment, or if you go beyond 2010 with it?

[minnie1928]

DH and I are currently working our snowball, focusing on paying off our ford focus wagon. The loan has a current balance of 5,100 at 7%. I received a balance transfer offer from citicard for 2.99% until 2010, with a max balance transfer fee of 99 dollars. That is a huge cut in interest, which would help to pay this thing off faster. Should I stick with the 7% fixed rate loan from the bank or take advantage of this offer?

With your snowball plan, how long will until you have the bank note paid off? You want to make sure that if you transfer it to the CC that you pay it off in the same (or less) timeframe. Also, you might want to check to see what the minimum payment will be for the CC at the new balance to make sure that it isn't higher than you can afford (doubt that it will be, but never hurts to ask).

CC transfers are inherently riskier because the CC company can jack the rate pretty quickly as Jim says. But if you feel confident that you won't get caught in any of those situations, then I'd go for it.

[Like2Plan]

DH and I are currently working our snowball, focusing on paying off our ford focus wagon. The loan has a current balance of 5,100 at 7%. I received a balance transfer offer from citicard for 2.99% until 2010, with a max balance transfer fee of 99 dollars. That is a huge cut in interest, which would help to pay this thing off faster. Should I stick with the 7% fixed rate loan from the bank or take advantage of this offer?

Would you be able to pay off the car loan in full before the end of the introductory offer?
If you do take them up on their offer, make sure you understand all the rules. For example, I would not use that CC for anything else because sometimes they apply your payments in such a way that you end up paying loads of interest on your new purchases.
I would also make payments early and electronically (direct with the CC company) so as to insure the payment is credited to the account on time. (And I would verify each transaction had completed--just to make sure the payment posted to the CC correctly).