Balance Transfer Cards

Balance transfer credit cards help borrowers manage high-interest debt by moving balances to a new card with a lower interest rate—often featuring an introductory 0% APR period. This can significantly reduce interest costs and make it easier to pay off debt faster.

Promotional periods typically last between 6 and 21 months, offering a window to focus on repayment without accumulating new interest. However, most cards charge a balance transfer fee, usually 3% to 5% of the transferred amount, which should be factored into the overall savings.

To get the most from a balance transfer card, it's essential to pay down the balance before the intro period ends and avoid adding new debt. Used strategically, these cards can be a valuable tool in a broader debt reduction plan.