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

ByJason Knowles and Ann Pistone WLS logo
Saturday, March 25, 2023
Credit card savings tips
Want to save thousands of dollars on your credit card bills? Consumer Investigator Jason Knowles breaks down the numbers and tells you what you can do

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.

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.

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.