Credit card payments are an ongoing issue in most households. If you don’t pay the balance each month, those credit cards will start accumulating interest fees, and suddenly you can find yourself with much higher monthly payments than you budgeted for. What’s worse, over time the cost of those interest fees can add up to more than the actual charges. To avoid paying high credit card interest rates, many people make a balance transfer to another card that offers lower or no interest. This can be a good strategy that will save you money in the long run, if you understand the pluses and minuses of a balance transfer.
Credit is a fact of life, and many Americans are overspending because of rising credit card limits. In order to make money, credit card companies want you to spend more than you can pay back each month on the revolving credit they provide. The problem is that too many Americans spend a lot more than they can afford to pay back, which results in having to make higher credit card payments without putting a dent in your overall debt. If you want to pay off a balance on a high-interest credit card, it may be time to consider a balance transfer.