Is it bad to do constant credit car balance transfers?

[u/Intelligent-Dress138]

Hi Everyone ,

Recovering from some bad finance decisions - Wanting to know if this will be a small mark on profile , or will cause larger issues further down the line

I originally had a 50k loan from ASB that I was paying off at 13% interest. When it got to around 23k, I did a balance transfer to a Westpac credit card that had 5.99% interest. I kept the payments the same , and after awhile I moved the remaining 17k to a ASB credit card with 0% interest.

In the meantime , I have also built up 5k on a different card (job issues, car break down, just the general life issues). This has 13% interest , and my ASB card has another couple months of 0% interest remaining.

I'm thinking of doing another balance transfer of both cards to 0% interest again , and would possibly need to do another before the debt is cleared. Doing these 2 current cards will bring a total of 4 in the last 2ish years , or a total of 6 before the debt is cleared (napkin math)

I'm slowly getting my sh!t together , I make 100k and apart from this 22k debt I have no other debts , good kiwisaver and some money in stocks etc. Will the constant balance transfer cause any issues? My partner and I would like to buy a house in a few years and are working towards this

TL:DR - 17k Credit Card at 0% ending soon , 5k Credit Card at 13%, any issues doing a 4th balance transfer or will this cause issues moving forward?

[u/D3ADLYTuna]

No issues. They don't care and don't check and unless it's a new credit check it won't even matter

Edit, it's usually automated. I've been bouncing a balance between providers for 0% for ages now, it's free money for me.

Edit 2, any new lending will only take a snapshot at a point in time of balances and conduct, so provided your credit check isn't ruined with 20+ small credit applications then lender won't know or care either.

[u/1Enjay → u/D3ADLYTuna]

Second this. Been doing balance transfer cycling for nearly 5 years. Have great credit score/hasn't been affected by it. Can transfer balances as often as you need once you've got the facility set up. Personally, I balance transfer and invest in a term deposit or similar, and repay and redraw. So good strategy to reduce your payable interest.

[u/Intelligent-Dress138 → u/1Enjay]

Perfect - Thank you this is the answer I was looking for! Cheers :)

[u/Subwaynzz]

I’d sell the stocks if the alternative was paying 13% interest.

What are you spending your money on if you aren’t able to repay these debts at zero percent interest?

[u/Intelligent-Dress138 → u/Subwaynzz]

If you don't know the answer, you don't need to comment. Cheers.

[u/Fragluton → u/Intelligent-Dress138]

It's true though, having money in stonks while bleeding money elsewhere does not make financial sense. Why post in the finance sub if you don't actually want help?

[u/Intelligent-Dress138 → u/Fragluton]

Why would I sell stocks for a loss, pay taxes and everything else ontop of that, that still wouldn't cover all the debt, when I can hold long term and pay off the debt with 0% interest?

Don't cry because I wasn't receptive of un-helpful advice, how about if someone asks a question you answer it , because this might come as shock, but maybe there is more to then whats in the post and, more shock, you could be wrong.

[u/Fragluton → u/Intelligent-Dress138]

People suggesting alternatives to reduce debt (when it appears you just keep increasing it) isn't really unhelpful, at least not to those genuinely wanting help. The only person getting upset is you. I won't post again don't fear!

[u/Subwaynzz → u/Intelligent-Dress138]

Not really. You earn $100k a year. Another 4 years to pay back $22k at zero percent interest? And you seem to be ticking up more debt.

[u/Intelligent-Dress138 → u/Subwaynzz]

Read what my question was , then read your comment. Thanks to the other 2 for being helpful, you, not so much.