Would you like to save more than $1000 to $1400 this year? If your household has $8,000 or more in credit card debt or more, a balance transfer credit card could be the answer.
Most of the time, the minimum payment that is due each month is not enough to cover the interest. You might have to make payments for years and pay at least twice as much as you were originally charged. Switching from a credit card with a high interest rate to one with a lower one...
Would you like to save more than $1000 to $1400 this year? If your household has $8,000 or more in credit card debt or more, a balance transfer credit card could be the answer.
Most of the time, the minimum payment that is due each month is not enough to cover the interest. You might have to make payments for years and pay at least twice as much as you were originally charged. It makes perfect sense to switch out a credit card with a high interest rate for one with a low interest rate and a 0% APR introductory offer for the first year. If you take the time to compare balance transfer credit card offers and come up with a plan for making payments, you could pay off a lot of your credit card debt without paying any interest.
Many balance transfer credit card offers come with a transfer fee, which can be anywhere from $50 to 3%. When you figure out how much you've saved, you need to take this into account.
Of course, the best plan would be to pay off the whole balance by the end of the introductory period so that you don't have any debt. But if you can't do that, you could still save over $1000 in a year by paying what the minimum used to be, say $125 per month, plus an extra $50 to $75 each month. This would pay off a good portion of the balance and save you over $1000. If the new balance transfer credit card has a lower rate than your current card after the introductory period, you're still a winner.
When you play this game of trading credit cards, there are a few things to keep in mind. If you want to pay off your debt, don't keep using the old credit card. You might want to stop it after a few months.
If you want to apply for another balance transfer credit card with a 0% APR introductory period when this card has been in your name for a year, you should also think about how each credit inquiry affects your credit score. So try to change credit cards as little as possible.
Balance transfer credit card applications can work if you have a good plan and stick to it. You can get out of debt faster if you pay yourself interest instead of the bank. Think about how much you could save if you could put that $125 to $200 away each month in an account that pays you interest.
