I owe a Bank about $8700on credit card, and APR has just gone up to 14.2% without any fault. It used to be way below than that. Credit Limit is $10,500. Now, They are sending me some checks for balance transfer (Checks can be deposited on my own account too), If I use the check then credit Limit will be increased to $15,000 and APR will be 0% until December 2011 but there is 3% fee upfront.
I just did some math and seems like I would be saving some money even if i have to pay 3% fee upfront if I deposit check on my account and pay them back after 1 month coz, when i pay them back after 1 month, most of that payment will go to reduce the amount i am paying high interest and I will not paying as much monthly interest.
What you guys think....? am I doing right math?
If i write $6000 check on my account fee would be $180.
My monthly Interest for existing balance is about $100.
When I pay them that $6000 next month, my monthly interest until December will drop to around $35. So, I would be saving around $60 per month. $60 per month times 9 month = $540. minus $180 upfront fee = $360. (net saving)
In this case is it worth to take offer?
Is this right or I am missing something here?
As, my credit limit will be increased, it will give me some room for emergency as well.
***Next, when I pay back after 1 month do, they check if I actually transfered the balance or just played with them?
Thanks.

if you can pay off the balance within the promotional period, i would say go for it. by taking the balance transfer offer, you are saving more money. unless you can pay the entire balance within 2 months without the help of balance transfer then dont go for balance transfer. your math to me looks fine.
you could apply for a new account with 0% promo and transfer the balance. that option might give you longer time frame to pay the debt off. recently i got offer from citi for 0% balance transfer (of course 3% charge) for 18 months. i was paying close to $50 per month interest fee on existing debt. so i took the offer, the charges were around $200 for the fee but i got 18 months to pay it off.

Thanks, Kaji,

This is also Citi Bank. I dont want to apply for another card coz I already have more than 10 credit cards and most of them are of small credit line around 12-1500. Two of them have $3000 limit. Most of these have no balance left. So, I have no balance to transfer but I am trying to grab the offer they are making to reduce interest on existing Balance. and By the time the promotional APR gets expired my total amount due will be same as if i would not have transfered balance. and I am hoping that I will pay off this Balance By the end of this year so credit score could jump to somewhere 750+ vs -700 now.
And everytime I open a new account it hits on my Credit score which is not bad so far but i am trying to make it better.

I was in the same boat and its a great way to save some money and ease off your life when u cant make the full payment. I paid off my school dues by using a balance transfer offer and they dont charge you the intererst till the promotional period expires. In my case, I was not able to pay my school dues and the school started to charge me 18% interest which I was not aware of. Once, I found that I felt like i was dumb to pay such a high interest rate but i didnt have any money. So, I used the balance offer and I wont be paying any interest till November of this year. 

Yo dherai amount ko credit card chai kasari paune ho.....is there any way ?

How much you can pay and how much they will charge after the promotional period cruch the numbers  and make your own decision.

Go for it ... and once u reach the time and u did not pay have another credit card ready to off the other one but make sure u try to pay as much u can or u will never be out of this. Good luck and try to be free from this problem ASAP.

Thanks