Balance transfers are promoted as interest-saving moves — move your high-rate balance to a card offering 0% introductory APR and pay it off during the promo. However, the blanket statement that transferring a balance **always** reduces total interest cost is false. There are frequently transfer fees (commonly 3%–5% of the transferred amount), promotional periods that expire and revert to high standard APRs, and eligibility limits. If you can pay down the transferred balance during the zero-interest window and the transfer fee is small relative to the interest you’d otherwise pay, then a transfer can save money. If not, the transfer fee plus any remaining post-promo interest can increase total cost.

Before doing a transfer, calculate the all-in cost: transfer fee + (any interest during the promo, if applicable) vs projected interest without the transfer given your planned payment schedule. For example, a 3% transfer fee on $5,000 is $150 — if your current card accrues more than $150 in interest over the payoff period, the transfer may make sense provided you pay it off before the promo ends. Also watch for penalties that void the promo (late payments can trigger the standard APR), and consider the impact on credit utilization and score (a new card with an added large balance may change utilization ratios). In short: balance transfers can save money when used strategically, but they are not a universal panacea.