Estimated Monthly Savings: $20
Despite their bad reputation, credit cards are great financial tools when used wisely. They are convenient, can help you build your credit score, and can even earn you money through different reward schemes. And when you want to get really strategic, they can save you money.
Transferring the balance from your credit cards to another can be very helpful in your journey to cutting down your debt in a timely manner.
Look for balance–transfer credit card dealsÂ that offer an interest-free period. These are usually offered for up to 12 months. The card you are looking to transfer money from is likely not charging you a better interest rate than 0% so you are getting charged monthly for the balance you have yet to pay. This can make you feel as if your payments are getting you nowhere. Take advantage of this perk while you’re cutting down on your debt.
Lower interest rates
Even if you can’t find an interest-free period off (which is highly unlikely), just finding a card that offers a lower interest rate can save you money in the end and help you get out of debt faster.
Simplify your situation
If you have several different credit cards, balance–transfer credit cards give you the opportunity to streamline your payment process. Rather than worrying about a handful of different payments, worry about one. This also makes it easier to realize the progress you have made.
Still, assess your debt, do your research and make noteÂ of any upfront fees. It isn’t uncommon forÂ these offers toÂ charge anywhere from 2-5% of the balance you want to transfer. Shop around and read the fine print. If you play your cards right, you could save big!