Should You make a balance transfer?

The very idea of a balance transfer sounds a little intimidating  and like you’re treading deeper into the maze that is debt. After all, debt is bad. Very bad. But so is high interest. If you’re being tacked on 45.00 in interest monthly, you’re pretty much throwing that money away. Enter the balance transfer. For those that don’t know, a balance transfer is when you pay off one credit card with another, effectively transferring the balance to the new card. Doesn’t it already sound like some crazy person logic? There are some instances however where it is a viable though temporary solution. You see, if you transfer to a new card offering you the 12-15 months no interest deal, you’re saving on the interest that the existing card is charging you. Those 45.00 and up could be paying off the existing debt. If you have the money lying around to pay off the debt instantly, however, then I don’t recommend you opt for the balance transfer. The best case scenario for a balance transfer is that you make some big payments towards the existing debt, the balance you’re going to transfer isn’t too big to begin with (less than 2k hopefully) and you’re going to budget to eliminate it during the free interest time period that you’ll have on the new card. When I first selected the card to do a balance transfer, I did a simple search for “best cards for balance transfers”. I ended up selecting the Discover card because I liked that in addition to the 18 months of zero interest and the low balance transfer fee, I also got cashback rewards that I could use to pay off the balance and I could see my credit score. I prefer to use a credit card when I travel because I’ve had my debit card hacked in the past when I traveled and it was not fun being left waiting for all new debit card information. The discover card has been reliable in my travels. In addition to the Discover card, I later oopted for the Citi Diamond Preferred card, mainly because it is through my bank and I wanted the perks of the rewards when buying tickets to games or events but they also have the longest 0% interest period of 21 months. Keeping all that in mind, I hope you will budget wisely to stay out of debt and use it only to keep your finances safe and raise your credit score.

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