If you want to reduce credit card debt without paying a fortune in interest, 0% balance transfer credit cards can be an extremely helpful tool. With a 0% balance transfer, you pay a small transaction fee and no interest for the length of the 0% interest period. With current balance transfer offers lasting up to 18 months, this can translate into hundreds of dollars in savings and reduce the time it takes to get out of credit card debt by years.
Here’s an example using the Citi® Platinum Select® Card which currently offers a 0% APR on balance transfers for 18 months and charges a 4% balance transfer fee. A person with $5,000 in credit card debt will pay a $200 balance transfer fee and no interest for 18 months. Assuming a $100 monthly payment, at the end of the 0% interest period, that person’s credit card debt will be $3,400. This amounts to a 32% reduction in credit card debt in a year and a half. Continue Reading »
