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Which debt payment plan would you choose/suggest?

Asked by tedd (14078points) February 26th, 2012

While I make pretty good money, I am heavily in debt thanks to the student loans that paid for the education that got me making the money I make. I have 5 separate student loans, one credit card, and one car loan. My game plan has always been to pay down the debt with the highest interest first. Then as I paid off one debt, put the money that would be paying that monthly payment into the next highest interest debt, to pay it off faster… eventually paying the entirety of what I’m paying now on my last debt.

The credit card had been the highest interest debt for some time, but several months ago I opened a new credit card that offered 0% interest on balance transfers for one year. I’ve still been paying my extra money into the credit card, but it occurred to me that I’ve been receiving these 0% interest for one year credit offers for the last year or two at least, and still get them now. So the idea has occurred to me that I could start dumping my extra money into my next highest debt (one of the student loans), rather than the credit card. Then at the end of the year, I would open a new credit card with the 0% rate, and maintain 0% interest on my credit card debt perpetually.

The possible problem is what happens if I stop getting those offers?

What do you think? Is it worth risking being stuck with my credit card debt on a pretty high interest rate, or will I probably be able to continue swapping that debt into new 0% credit cards?

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