DayCents

Balance Transfer

A balance transfer moves debt from a high-interest credit card to a new card offering a low or 0% promotional rate, usually for 12–21 months. Done right, every dollar you pay during the promo goes to principal instead of interest — a powerful way to escape a debt spiral.

Watch the transfer fee (typically 3–5%) and, crucially, the rate after the promo ends. A balance transfer only works if you have a real plan to clear the balance before the low rate expires — otherwise you're back where you started, plus the fee.