If you're carrying a balance on a credit card with a high-interest rate, paying that debt down can feel like an endless journey. That feeling multiplies if you're repaying multiple high-interest accounts. So, how do you regain control of your finances and solidify your plan to pay off your debt? A credit card balance transfer might be the answer for you.
What are credit card balance transfers?
A credit card balance transfer does just what its name implies — it transfers the balance on a credit card or credit account to another account. This allows you to take advantage of lower interest rates on a new credit card and helps consolidate your balances into one comprehensive account. This can put you on the fast track to repaying your debt while saving money on monthly payments.
Transferring is NOT the same as repaying.
A credit card balance transfer is not the same as paying off your credit card debt. Just because your credit card statement says "zero" doesn't mean you're out of debt. Credit card balance transfers are just that, a transfer. The amount you owe on Credit Card A is reassigned to Credit Card B.
You can consolidate your payments.
If you're making minimum monthly payments on multiple credit accounts, consolidating those accounts with a balance transfer to a single credit card can help simplify your repayment plan: one statement, one payment, and fewer worries.
Save on interest rates.
If you're paying high-interest rates on credit cards or other credit accounts, transferring that amount to a lower-interest card can help you do that. Just be aware that many credit cards charge balance transfer fees. Find out first how much those fees are and if the interest savings outweigh the total fees you'll incur.
Commit to making on-time payments.
The benefits of credit card balance transfers are undeniable. But those benefits depend on you and how you use your credit. When you transfer your credit card balance, especially to a card with an introductory or special offer, it's important to make on-time payments your priority. Missing a payment could lead to those offers being canceled.
Think you're ready to give balance transfers a try? Find out how much you could save by exploring some of the best balance transfer credit cards from FAIRWINDS.