Definition
Moving debt from one credit card to another, often to get a lower interest rate. Be aware of any balance transfer fees.
What to consider
- Look for low-interest promotions that can ease your monthly payments.
- Be sure to factor in any fees when comparing options.
- Think of it as a way to simplify your debt management.
Real world scenarios
- Ron moves his high-interest credit card balance to one offering a 0% promotional rate, aiming to pay off the debt before the promo ends.
- Lisa consolidates multiple card balances into a single lower-rate account, simplifying her monthly payments.
- Raj weighs the transfer fee versus long-term interest savings to confirm if a balance transfer is beneficial.
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