Adults with Existing Credit Card Debt
For those individuals with existing credit card debt who are trying to repair their credit, it is possible to use balance transfer credit cards to help save money. By strategically performing a balance transfer, it is possible to shift the burden of high interest payments to a less expensive card, or one that offers 0% APR.
1. Balance Transfer Credit Cards
Balance transfer credit cards can put you back in control by consolidating high-interest credit card balances onto one low interest rate card, and the interest you save can add up to thousands of dollars long term.
Outstanding Balance $2,800
Purchase Rate: 19.5%
Balanced Transferred: $2,800
Balance Transfer Introductory Rate: 0%
Balance Transfer Introductory Period: 12 Months
The two biggest considerations when choosing a new credit card for a balance transfer are to determine how long your introductory rate will last, and how much you are charged in flat fees to do the initial transfer.
The typical fee amount for balance transfers is 3 percent of the transferred amount. For example, if you are transferring $2,500 from one credit card to another, you would be charged $75 just to transfer the balance.
Most offers will expire, so be sure to read the small print and find out how long yours will last.