One of the quickest ways to accelerate your debt payoff process is to transfer credit card balances to a card with a zero-interest promotional offer. If you have a good payment history with a credit card you’ve already had for a few years, you might have a balance transfer offer on that card; you can also find balance transfer offers on new credit cards you might be eligible for. These offers usually last for anywhere between a year and two years before increasing your interest rate to one you’re probably more used to, in the 16–25 percent range.
It’s like putting pause on your credit card balances. Your balances won’t shrink, but they won’t grow due to interest either. It’s up to you to accelerate your payments as much as possible before the interest-free period ends.
It’s best to take advantage of an interest-free offer when you know you can pay off the balance during that promotional period. For instance, if you can transfer up to $5,000 but only have twelve months interest free, it doesn’t make sense to move your balance over unless the post-promotional interest fee would be lower than the interest rate you are already paying on your current card. But maybe you can transfer $1,000 with confidence to be able to make a dent in your debt in a quicker manner.
Try it once and see if it helps motivate you in your debt payoff process. If it feels too complex, leave your debts where they are and stay focused. Using balance transfers is an advanced trick a lot of people use to get their debt under control and kickstart their payoff plans, but it’s not for everyone.