Balance transfers can be a useful tool in credit card debt repayment plans, but it is important to use them wisely. When considering a balance transfer, it is important to:
- Read the terms and conditions: Ensure that the balance transfer offer includes a lower interest rate and that any fees are taken into account.
- Understand the introductory period: Balance transfer offers often include an introductory period with a lower interest rate. It is important to understand the length of this period and ensure that the balance can be paid off before the rate increases.
- Avoid new charges: Avoid using the new credit card for additional purchases, as this can add to the debt balance and make repayment more difficult.