Paying Off Debt Quickly With A Balance Transfer Credit Card

July 11, 2024 By: Stephanie H. - CreditMonarch Online Writer0 comments

Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

Do you currently have some credit card debt? Do you keep paying your minimum payment every month and the balance doesn’t seem to ever go down? We know this can be very frustrating but there is a solution for this type of problem. The solution is simple, all you would need is to opt in for a balance transfer credit card. A balance transfer credit card is used to transfer money from one credit card or loan to another credit card.

Moving balances with a higher annual percentage rate (APR) onto a credit card with a lower annual percentage rate (APR) can result in a lower interest rate. Bills can be simplified by combining multiple balances with different creditors on one card with one payment through balance transfers. Transferring the balance to another credit card with a 0% APR offer and paying it off during the offer term can help you save hundreds of dollars in interest, and help you pay down credit card debt faster.

You might be asking yourself, when does an introductory rate end? Well, introductory rates often last up to 21 months after they start. Determine how long the low rate lasts and how much you can pay off before it ends. Be sure to keep up with your payments, because missing one will likely cancel your promotional rate and you’ll have to start paying interest based on the higher standard or contract APR for the account. Transferring a balance to a credit card usually results in paying a transaction fee of 3%–5% of the transferred amount. Despite the fee, the long-term savings from the lower promotional rate can often be more beneficial than the cost.

Once the introductory rate ends, the contractual rate will take effect on any balance that is still outstanding. If your balance remains after the promotion ends, switching from 0% to a higher interest rate within one month can result in an increase in your agreed minimum payment. Here at CreditMonarch, we help individuals choose the credit card that suits them best and we believe these are the best and most popular balance transfer credit cards in July 2024.

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• Balance Transfer