Thursday, February 15, 2007

Zero Percent Car Loan?

I've been thinking about moving yet another of my debts to a zero percent credit card: my car loan. As of last night, I found out that the payoff on this loan is hovering at just under five thousand dollars, with just over 300 bucks-a-month as the payment. For those math whizzes out there, thats about 17 more months of payments. After some back-of-an-envelope math (isn't that the best kind), I discovered that I could save myself more than 20 bucks a month by switching to a zero percent credit card. Thats about 350 dollars in interest.
So this leaves me wondering. Are there any downsides to doing this, provided that I can find a deal where I can transfer this non-credit-card-debt to a credit card and I am able to get myself a card with enough of a limit? Again, I'm not racking up new debt, I am transferring existing debt (secured by my car) to an unsecured credit card. I still haven't decided if I am going to go for it or not. I like the the idea of saving money, but I recently moved one of my student loans to a zero percent card as well. I'm looking for ideas/comments about this; if anyone else has done it before....please let me know.

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