3 Ways Balance Transfers Help You Manage Debt and Save Money

Core Insights - The article discusses the challenges of carrying credit card debt and highlights that approximately 103 million Americans experience credit card debt at some point during the year, with 82% of adults holding at least one credit card and 47% of those cardholders carrying a balance annually [1] Group 1: Financial Impact of Credit Card Debt - Carrying credit card debt can significantly strain finances, especially when high annual percentage rates (APRs) lead to substantial interest charges, making it difficult to reduce the principal balance [3][4] - The average APR for existing accounts with balances is around 21.5% to 24%, which can contribute to a cycle of debt [4] Group 2: Benefits of Balance Transfer Cards - Balance transfer cards can reduce interest payments by allowing users to move their debt to a card with a low or zero APR, enabling more funds to be allocated toward the principal [4][6] - Consolidating multiple credit card debts into one balance transfer card simplifies management and reduces the risk of late fees, ultimately leading to lower overall interest payments [5][6] Group 3: Managing Large Purchases - Balance transfer cards can also assist in managing large, unexpected expenses by allowing payments to be made without incurring excessive interest fees, thus making it easier to handle financial emergencies [7][8]