by simon baird
Tuesday, November 02, 2010
currently i pay 6.64% interest on my mortgage. it's going up 25 points any second now, so let's say it's 6.9%. suncorp are currently offering 1.9% on balance transfers for 15 months (when you sign up for a new credit card). suppose i "balance transfer" $10,000 from my two current cards and put the proceeds on my mortgage. i'd pay 5% less interest on $10,000 for 15 months, which is a saving of $625 or $42 a month. but, the annual card fee is $120 which brings it down to $500 or $33 a month. of course, after 15 months i'd pay off the new card and cut it up. worth it? this is tax free btw. what if i repeat this scheme with a few other low introductory rate cards?