Transferring a credit card balance can be a great way to simplify and save money. For people with debt on high interest credit cards, transferring the balance to a card with a low interest rate can help save some serious cash.
Why People Use Balance Transfers
Balance transfers can be helpful for people who have large amounts of debt on multiple cards. Many times, these cards may charge high interest rates as well, multiplying the debt even further. With a balance transfer credit card, people can consolidate all their debt onto one card. This makes it easier to keep track of, because they now only have 1 payment a month. Plus, by getting a low or 0% balance transfer APR, they can catch up on all of their existing debt without racking up more high interest charges.
What to Do to Transfer a Balance
In order to transfer a credit card balance, it is important to find a card with a low interest rate. Many credit cards offer an introductory 0% APR on balance transfers for a set period of time. By using one of these cards, you will not have to pay any interest on balance transfers until that time is over. Find out the terms and conditions of the balance transfer: what the card’s credit limit is, the interest rate on balance transfers, and if there is a balance transfer fee. You can then decide on a balance transfer card with favorable terms for you. Once you have the card, you’ll be able to consolidate all your debt and work on paying down the balances without stacking up more interest debts!