What is a credit card balance transfer and how can it help you save money?

Saturday, March 25, 2023
CHICAGO (WLS) -- Credit card interest rates are at a record high!

However, according to Bankrate.com, 37% of consumers don't know they may qualify to transfer balances to a temporary 0% interest rate. It can save you big.
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For example: Bankrate says, if you moved $5,805 in credit card debt to a 0% "balance transfer" card, you could pay off your debt in about 21 months -- or less than 2 years -- with monthly payments of approximately $276. That's without interest!

If you try to pay the same amount per month with the average interest rate of under 20%, it would take about six months longer and you'd end up spending an extra $1,400 in interest.
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And look at this: If you pay only the minimum balance on that same amount of 5,805 with under a 20% interest rate, it would take you 17 years to pay if off and you'd hand over more than $8,000 in interest!

So, this is also a reminder to pay off those balances.
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