Balance Transfer

A balance transfer is a financial process where the debt owed on one credit card is moved to another credit card. This is commonly undertaken by cardholders seeking to take advantage of lower interest rates offered by competing credit card issuers. By transferring the balance, the cardholder can potentially reduce the amount of interest accrued on the existing debt, thereby lowering overall costs and facilitating faster debt repayment. Balance transfers can be an effective debt management strategy, especially if the new card offers a promotional interest rate period, such as 0% interest for a set number of months. However, it's important for cardholders to consider any associated fees, such as balance transfer fees, and to understand the terms and conditions of the new card to ensure it benefits their financial situation.