Balance Transfers: Getting Started!
If you have credit card debt, you’re familiar with paying interest. And if you have a high interest rate on that debt, it can add hundreds or thousands of dollars to what you end up paying back in full.
One way to get out of this cycle and typically find a lower interest rate is with a Balance Transfer.
A balance transfer is when you move your debt from one account to another. People usually do this to get a lower interest rate or repayment term that works better for their budget. This means they’ll pay less over the lifetime of their loan.
For example, if you had a 24% Annual Percentage Rate (APR) for your credit card debt, a debt transfer could mean moving that debt to a new card with a lower rate, even one with an introductory special rate.
Other Kinds of Transfers
Credit cards are the most typical balance transfers, but people also use balance transfers for:
- Consolidating student loans
- Medical debt
- Car loans
And other loans that are paid back in installments.
A+ Tip: Use our many loan/debt calculators to figure out what you could afford or need to save to reach your goals.
Repayment, Your Way
Finding a better repayment plan for high-interest loans not only helps you pay less, it allows you that extra room to grow. Money that might have gone to interest could be invested in other parts of your life, or saved for the future.
If you have questions about your specific financial situation, Affinity Plus member advisors can talk it out with you and help figure out what works best for you.