Transferring revolving high-interest credit card balances onto a **0% introductory APR balance transfer card** halts monthly interest accumulation, allowing 100% of your monthly payment to attack principal balance reduction.
1. Balance Transfer Math: Calculating Net Savings
Example: $10,000 credit card debt at 26.99% APR vs 0% APR for 18 months with a 3% fee.
Scenario A (Keeping on 26.99% card paying $600/mo):
Total Interest Paid over 18 months: ~$3,150
Scenario B (Transferring to 0% card with 3% fee):
Transfer Fee: $300 ($10,000 * 0.03)
Total Interest Paid: $0
Net Savings: $2,850 ($3,150 - $300)