Viewing a single comment thread. View all comments

JungleCrab OP t1_je3313o wrote

Thank you everyone for informing me! I wasn't sure since this is my first no interest type card. I will make sure to pay the minimum and to pay off the rest before 12 months.

2

babarock t1_je34b18 wrote

Divide the balance by 11 and pay that. You usually want it paid in full before the term is up. Many times if not you get hit with all the interest.

1

crowd79 t1_je4f4ht wrote

If OP is extremely disciplined this isn't totally necessary. I'd pay it off slowly (min payments only) and park the excess in a high-yield savings account in the meantime paying 4-5% interest.

1

babarock t1_je4qexv wrote

Are you suggesting OP spread the repayment over several years by only making minimum payments? If yes, wouldn't the much higher interest charged on the credit card evaporate the 4-5% you could make via the HYSA.

If you have the cash, put it in a HYSA then make large enough payments to pay off the debt before the deferred interest is added back to the balance. That way you make a few $ and pay zero $ in interest.

If you can only afford to make minimum payments then the deferred interest card ends up being different that a regular credit card regarding how much the borrowed money cost. I've done these loans a couple of times with Home Depot and a HVAC replacement. The interest is delayed for a period of time but not forgiven unless paid in full before the time is up thus I would divide the balance by the time factor so being extremely disciplined with the payments, the debt would be gone before any interest would be charged. I got to use their money to fund a project.

1