07 Nov Don’t Carry Balances – Chase Slate to the Rescue!

In August Chase released a premium credit card called the Chase Sapphire Reserve. This card is the bee’s knees, the cat’s pajamas, and is as cool as the other side of the pillow. One of the most attractive features of the card is the MASSIVE sign-up bonus of 100,000 Chase Ultimate Rewards! What will 100,000 Ultimate Rewards get you? Well how does over $1,500 in travel sound?  I mean who doesn’t want $1,500 in FREE travel!? Just spend $4,000 in 3 months and the points are yours! Easy enough right?

Ain't she beautiful!?

Ain’t she just beautiful!?

So easy that perhaps you spend that $4,000 in just one month – CRUSHED IT! But… what if you don’t exactly have $4,000 in the bank to pay off that credit card balance when the month ends?

The Problem – Credit Card Interest Fees

Paying interest on high Annual Percentage Rate (APR) credit cards is a great way to waste all of your hard earned money. Just look at this text on my latest Chase Sapphire Reserve monthly statement:

Here is how Chase wants me to pay my monthly statement...

Here is how Chase wants me to pay my monthly statement…

My balance of $1,496 can either be paid in full by the due date of 11/27/16, or I can pay the minimum payment of $25.00 and pay over $1,000 more over the course of the next 8 years.

My oh so unbelievably ridiculous CSR interest rate!

My oh so unbelievably ridiculous CSR interest rate!

That is just plain silly. I can think of several better ways to spend $1,000, can’t you?

So, who IS paying it?

According to the folks at Money Under 30

“The average US household that has debt has more than $15,000 in credit card debt. Meanwhile, the average APR on a credit card is now more than 16 percent.”

$15,000 at that interest rate – YIKES! Come on people lets fix this money wasting problem!

Solution #1 – Direct attention to the AYP Starter Guide:

Pay your balances in FULL, EVERY month – This is very important. The points and miles that you earn will not be worth it if you carry a balance on your rewards credit card from month to month. Credit cards are notorious for charging lofty interest rates on credit card balances that are not paid in full each month, and these interest fees typically cost more than the worth of the miles you earned. Don’t change your spending habits in the name of points and miles! You can change the way you pay for things but don’t spend more than you would if you were using the wad of cash that used to fill your wallet.

Empty that piggy and pay them bills people!

I absolutely cannot stress this enough. Each purchase you make with a credit card has to be treated as though the funds are spent and out of your bank account.

“Gee thanks for the advice, but that doesn’t help me with my current balance!?”

Agreed! Those carrying a balance realize that it is seriously costing you, but paying off that balance is easier said than done! So, we move onto another possible solution…

Solution #2 – Balance Transfer to 0% APR!

Travel rewards cards are attractive in that they provide the opportunity to earn valuable points and miles. However, their crippling interest rates are NOT attractive. Which is why you should consider a balance transfer!

What is a Balance Transfer? Exactly what it sounds like!

Balance transfers allow you to literally move your amounts owed on a card to another card that offers more preferable interest rates.

Enter the Chase Slate!

Chase Slate - the answer to your interest paying woes!

Chase Slate – the answer to your interest paying woes!

The Chase Slate is the best balance transfer card on the market. Don’t just take my word for it (or do?), Credit Karma agrees that the Chase Slate is #1! The Chase Slate card allows you to balance transfer within the first 60 days without charge. Additionally, there will be no interest on the initial balance transfer for 15 months.

Note –  If you are outside of the initial 60 days of card ownership you can still balance transfer to the Slate. However, you will be subject to fees (higher of $5 or 5% of the balance transferred).

Final Thought

As you saw in the example above, my Chase Sapphire Reserve statement totaling $1,496 would cost me an extra $1,042 if I only paid the minimum payment and carried the balance forward for 8 years.

Paying the astronomical credit card interest rates CAN be avoided – either by routinely paying your balance in full, or by balance transferring to a 0% APR card like the Chase Slate!

chase-slate-card-ayp

The Chase Slate – and now you know!

We get it… Life happens and sometimes paying your balance in full is just not an option…But now you’re informed! Save that cash that you work so hard to make and let the Chase Slate lend you a hand with 0% APR!

Happy [Interest Free] Travels!

DW

 

2 Comments
  • Alex Richmond
    Posted at 20:24h, 08 November Reply

    Can you transfer balance from another Chase Credit card to the Slate? Or if you have debt with another Chase card, do you have to transfer to another bank?

    • DW
      Posted at 23:40h, 08 November Reply

      Hey Alex! Great question and unfortunately you cannot transfer a Chase balance to the Slate card. I will be sure to update the post.

      I would look to BankAmericard featuring 0% APR as an alternative to the Slate, though there will be a 3% or $10 fee for the initial balance transfer…

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