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THE SCENARIO
Last time, I talked about a balance transfer offer I got in the mail, and I simplified the problem using an assumption. This time, I'll change the assumption to more closely model reality.
To review, the card has a $7,000 credit limit and 0% interest on balance transfers over the first 21 months after the transfer. The fee to do the transfer is 5% of the transferred amount, which is added to the balance on the new card.
Whereas last time, we assumed that no payments were due during the 21 months, this time we'll assume that 2% of the original balance is owed each month.
The question: If I wer...
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