DayCents

Balance Transfer

A balance transfer moves debt from a high-interest credit card to a new card offering a low or 0% promotional rate, usually for 12–21 months. Done right, every dollar you pay during the promo goes to principal instead of interest — a powerful way to escape a debt spiral.

Put numbers on whether it is worth it. Moving a $6,000 balance at 22.99% with a 3% fee costs $180, so clearing $6,180 across an 18-month promotion needs $343 a month. That same $343 aimed at the original card would take 22 months and about $1,376 in interest — so the transfer saves roughly $1,196 net of its fee. The saving is entirely conditional on clearing the balance before the promotion ends, because the rate afterwards is rarely gentler than the one you left. Two details: new purchases on the card may not get the promotional rate, and the transfer usually must be requested within the first few months to qualify.