Heather has a $6,500 balance on a credit card with a 14.5% APR. She wants to pay-off the balance, before buying her house, but she is only able to make a $250 payment each month. She has two options to pay-off the credit card.

Option 1: Pay the balance using the current credit card terms.

Option 2: Transfer the entire balance to a new credit card with the following terms:

* 3% charge on any balance you transfer

* 0% APR for the first 6 months

* 16.7% APR after the 6 month introductory period

For each option, calculate how long it will take to pay off the balance and the total money spent to do so. Assume no other purchases were made. Which is the better way to pay-off the balance? What advice would you offer Heather about paying-off this debt?

Detailed calculation required