A visitor recently questioned the effectiveness of using balance transfer credit cards to get out of debt. His skepticism was well reasoned, as it is hard to fathom just how expensive credit card debt can be. In my opinion, the visitor was more in denial about how much interest the average person with $5,000 in debt pays over the course of a year then he was about balance transfers. Similarly, its equally difficult to fathom how long it can take to get out of debt with an interest rate in the mid teens, let alone a default rate in the twenties.
So, to address the question of this balance transfer agnostic (and perhaps encourage others to take advantage of 0% balance transfers while they are still available), I put together a month by month breakdown to demonstrate how much a person with $5,000 in credit card debt can save on interest and reduce their debt load in just one year.
To view this chart and learn more about using balance transfers to reduce debt, please see the article, “Using Balance Transfers to Get Out of Debt“. If this doesn’t convince you that balance transfers are the best deal in town, nothing will.
