Can I Save Money Using a Balance Transfer Credit Card?
Balance transfer credit cards can be a smart financial move; Money Girl explains how to figure out if this is a smart move for you.
Listener Lisa asks:
I’ve racked up about $12,000 on a credit card. I’m working hard to pay it off, but the interest rate is so high (24.99%) that it’s going to take a long time. I typically pay about $500 a month on the card. Since I have good credit, would it be worthwhile to move the debt to a balance transfer credit card?
Answer: Depending on the deal you can get, moving your debt to a lower-interest balance transfer credit card can be one of the best ways to cut your interest rate and save money.
First, we’ll take a look at Lisa’s current card. It’s easy to use a credit card calculator over at dinkytown.com to find out how long it will take to pay off a credit card.
The Credit Card Payoff Calculator says it will take Lisa 34 months to bury her credit card debt if she continues to pay $500 a month, which totals $17,000 (34 months x $500). Read More »