Updated: 23 Jun 2025
Credit card balance transfers can be a smart financial move when done right. Let's dive into what they are, their benefits, and the potential pitfalls.
A balance transfer means moving your credit card debt to a new card with a lower interest rate. This can save you money and help you pay off debt quicker, allowing you to enjoy more 'milo dinosaurs' guilt-free. To benefit from this, you need to understand how to calculate balance transfer fees and use a balance transfer minimum payment calculator.
Pitfall | Description |
|---|---|
Transfer fees | Most banks charge a fee, typically 1-5% of the transferred amount |
Short promotional periods | Low rates may only last 3-12 months |
Higher rates after promotion | Interest rates may increase significantly once the promotional period ends |
Minimum payment traps | Making only minimum payments can lead to long-term debt |