Adventures in Debt

Pre-authorized payments are the best thing ever! Instead of having to pay 6 bills at various times throughout the month, a PAC payment on my Visa card means I only have to pay one bill (the Visa one) in the month. Definitely makes financial planning easier.

Okay, how many of you have an emergency savings fun? Probably not many. I have one, but only because a few years ago I was unemployed, so I know how important it is to have some cash stashed away. Unfortunately I’m not at the recommended 3-6 months living expenses level, but I figure I gotta start somewhere. I take a little bit of cash from my paycheque every two weeks, so that it grows, little by little. Again, it’s not the recommended 10% of my pay or salary, but it’s something at least. Plus I’ve got it in an ING Direct account so it’s earning me 3.5%. If you want to earn that much interest too, and get an extra $13 from ING for signing up, just go to www.ingdirect.ca and sign up. Don’t forget to use the referral code 13924950S1, that way we both get the $13 bonus!

So this month my preferential interest rate on a balance transfer on my RBC Visa card expires. I’ve been enjoying a fabulously low 1.9% for the last 6 months on part of my debt, which has been nice. I have one of those low rate Visas from CIBC too, but that low rate is now at 11.5%, which isn’t that low any more. Sure, it’s lower than the regular 19.5% or 21% that a lot of cards offer, but it’s basically the same rate as on my line of credit, so it’s not saving me as much moolah as it could be. So I think I’ll be getting rid of the low rate option on that CIBC card, seeing as I’m almost finished paying that one off. My PCF MasterCard is still the winner though, giving me 3.97% on the balance transfer I did when I first opened the card, and now 4.97% on some of the balance I transferred from the RBC Visa. If you thought the interest rate was good, get this: I get those low rates until I pay the balance off. Yes, you heard me! Until it’s fully paid off. So I’ve been getting 3.97% on the first transfer for the last year & a half, which totally rocks! I can pay just the minimum or whatever I feel like, and I’m still saving money. I admit I didn’t think they’d give me such a good rate on the second transfer, otherwise I would’ve called them up sooner!

My tip this week: if you already have a PCF MasterCard and have space left, call them up and see how much they’ll charge you for a balance transfer. You might be able to save some cash. If you don’t have one, and can afford to apply, DO IT! Then you’ll get the preferred 3.97% on that first transfer, and save some more cash.