A balance transfer moves existing debt from one credit card to another. The new card pays off your old balance, and you now owe that amount to the new issuer instead (ideally at a lower interest rate), which means that less of each payment goes to interest, and more goes toward reducing what you actually owe.
That’s the whole strategy in a nutshell. A balance transfer doesn’t erase debt or restructure it in any meaningful way. But it does change the cost of carrying the debt while you pay it off. Whether that change is worth the cost of making the move is what the rest of this post will help you determine.
For borrowers who can commit to clearing the full balance within a promotional window, a 0% offer can be a serious help in saving money from flowing down the interest-rate drain. For borrowers whose cash flow makes 0% promotional offers unlikely, a fixed-rate card with no transfer fee is often a less expensive path.
If you’re a member — or eligible to become one — the Latitude 32 Visa is worth a direct look before you apply anywhere else. To learn more or apply, visit latitude32.org/card-services/visa-credit-card/ or stop by any of our Charleston-area branches.