Utilizing Credit Card Balance Transfers to Pay Off Debt

A quick tip from Lynnette Khalfani-Cox, The Money Coach®

If you started 2019 with the intention to get out of debt, you may be bothered to find that some credit card bills are still lingering.

Don’t panic! You can still get on track financially and more quickly eliminate debts. Consider getting rid of your high-rate cards by utilizing balance transfers to a card with a lower interest rate.

Pay attention to these two things when transferring your balance:

  • Promotional Period – If you get a 0% annual percentage rate (APR) offer or a low introductory rate, you need to know exactly how long that promotional rate will last. Some terms are as short as six months; others can be as long as 18 months. Once the promotional period is over, your interest rate may be higher than what you are currently paying.
  • Fees – Before you say yes to a balance transfer offer, even one with a 0% APR, check for fees. Balance transfer fees usually run between 2% and 5% of the amount transferred. There may also be annual fees, inactivity fees, cash advance fees and more associated with your new card.

SchoolsFirst FCU credit cards do not have any annual, balance transfer or cash advance fees. Learn more here.


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Extra Credit provides general information to help improve our Member’s financial lives. Every situation is different, so please contact us for guidance on your specific needs. The advice provided in Extra Credit is not intended to serve as a substitute for speaking to a loan representative or financial advisor who can help tailor a solution for you.

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