Question 4
Balance transfers are a popular tactic for people looking to manage debt more efficiently. A balance transfer involves moving existing debt from one card to another, often with a promotional interest rate. For example, a card may offer 0% APR on transfers for 12–18 months, giving cardholders a chance to pay down balances without accruing interest. However, these offers often come with balance transfer fees, typically around 3–5% of the transferred amount. The strategy can save significant money if used carefully, but only if payments are made on time and the balance is paid before the promotional period ends. Otherwise, high interest rates may apply, and some offers may even cancel the 0% rate if a payment is missed. Balance transfers can be a smart move, but only when you understand the fine print.
What is the main advantage of doing a credit card balance transfer?
Did You Also Know...
By Wise Wallet
Long-term capital gains are generally taxed at lower rates than short-term gains, creating an incentive to hold investments longer.