Managing high interest credit card debt can be daunting, and it’s difficult to get on top of, but low interest balance transfer cards offer a practical solution. These low interest balance transfer cards can significantly reduce the amount of interest that you pay, helping you to pay off your debt faster. They are designed to help individuals manage and pay off existing credit card debt more efficiently, without adding too much credit card debt into the mix.
What’s a Low Interest Balance Transfer Card?
A balance transfer involves moving debt from one or more credit cards to another credit card with a much lower interest rate. These cards offer a temporary low or 0% interest rate on transferred balances, making it easier to reduce debt, without adding on additional interest charges. This can simplify your payments and reduce the total interest that you pay over time, making it easier to slowly pay off the balance owed.
What Makes Low Interest Balance Transfer Cards Different?
- Low or 0% Interest Rates – Low interest balance transfer cards usually have an introductory period, typically ranging from six to 24 months, where the interest rate on transferred balances is very low or 0% This introductory rate significantly reduces or eliminates interest charges during this period, enabling you to pay off as much of your debt as possible before any additional fees kick in.
- Balance Transfer Fees – It’s no secret that the majority of credit cards have credit card late payment fees, but low interest balance transfer cards also have balance transfer fees. These are slightly different to credit card late payment fees, and they are usually charged as a percentage of the amount transferred. There are some low interest balance transfer cards that offer ‘no fee’ transfers as part of their introductory offer.
- Standard Interest Rate – After the introductory period ends, any remaining balance on the card will accrue interest at the standard rate, which is often higher than the introductory rate. This is why the majority of card holders try to pay off as much of the transferred balance as possible, before this higher rate takes effect.
- Credit Card Limits – It’s no secret that credit cards have a limit, but the amount of debt you can transfer is subject to the credit limit of the new card. Not all low interest balance transfer cards let you transfer as much as you want, and you may not be able to transfer all of your existing debt if it exceeds the new card’s limit.
As you can see, low interest balance transfer cards have been designed with transferring balances in mind, and they are a worthwhile consideration if you want to get on top of your credit card debt. Though there are credit card late payment fees to be aware of, introductory low and 0% interest rates make it possible to pay off credit card debt, without the worry of interest accumulating before you’re able to catch up.
