On a totally non-Nazi related note, I have a question for Buffistas who are good with money.

We desperately need to get rid of our credit card debt so that we can have a chance in hell of getting another mortgage when we move in a couple of years. Is it a terrible idea for our credit score to sign up for a card with a 0% rate on balance transfers and use it ONLY to pay off our current balance? Would we be better off taking out a line of credit with our bank and paying it off that way?

It's so great! You watch for a while to mock, and then you're all, well, I could see that happening, and then they show random old science footage, and it all just seems SO PLAUSIBLE.

Only I was disappointed to note that the conspiracy appears to be that the Nazi activity was misconstrued as UFOs and not that the Nazis were colluding with aliens, which I think is a much better theory. They were all "lenticular shaped craft" and I was all, "You know what else is lenticular? Galaxies! Where aliens live!" But then the SO said, "Yeah, NAZI galaxies!" And I conceded he had won the point.

Yes, and yes, Jessica, but I forget why, only that that's the advice.

Jessica, the line of credit you take out on your home isn't weighted the same way as a credit card (it's considered a real estate loan, not installment, or retail) so it's slightly better on your credit report.

BUT if you take out a new card, shift the entire balance to it, and pay it off before interest is due, then that is a fine idea. Basically, it doesn't matter which way you do it, just that you pay it off with paying the least amount of interest possible.

Good luck!

The Dave Ramsey method (I almost said Dave Matthews method, which I think is to sell out a lot of arena shows) is to buld a tiny emergency fund first, then start paying off your smallest debt, then rolling what you were paying on that into the next smallest, etc. Then to build a bigger emergency fund so you don't dip back into credit later.

BUT if you take out a new card, shift the entire balance to it, and pay it off before interest is due, then that is a fine idea.

That's the idea. Or at least, shift as much of the balance to the new card as I think I can pay off during the promotional period. Since I assume the interest on a line of credit would be more than 0%, this way is the cheapest.

Yeah, the issue with the balance transfers is they only do them because they are certain (overall) they'll make money on them. Which means they count on you not managing to pay it back during the 0% rate and/or creating more debt. (Plus their normal % is probably higher than others). So...only if you're SUPER certain you'd pay it back in time.

It was surprising to see what factors went into my credit rating when I financed my house. I mean, I knew the basics of course, but it was worth learning that a new car, for example, was considered on a different level than credit cards (it's secured, for one thing). And that a retail credit card (for a specific store) was considered the riskiest and least positive. It's made me say a very quick "no thanks" to every single offer in a store to "save 15% by opening a card today!"

Brilliant -- I just got a call on my cell phone from my grandmother's number, but it was my mother on the phone. Luckily, I only had a moment to think my grandmother was dead (as you do), when my mother asked me who Blythe Danner's daughter is -- and then hung right up after I told her! OK then.

a retail credit card (for a specific store) was considered the riskiest and least positive.

Crap, the only card I have is for Target, though I don't carry a balance on it (handy for "we need dinner and payday's in 3 days"). And we have huge medical bills that are being paid at the minimum.

I guess it's time to win the lottery.