How Much Will I Save With A Balance Transfer

August 24th, 2010

A balance transfer card is a welcome relief to credit card debt. When you find yourself in a position where you need a solution and need it fast, turn to these cards for your answer.

0.99% p.a. for 12 months

You can use an online calculator to figure out how much money you’ll save by getting a balance transfer. There are specially designed calculators to help you figure out the exact amount you will save. All you need to do is fill in the details about the deal and how much you are currently paying on your existing card and the calculator will do the rest. This is the best way to figure out how much your savings will actually be.

How much money you can save with a balance transfer

You will be able to see how much you will have to pay every month for a minimum payment and how long it will take to get the balance paid off in full. This will also help you decide what type of card you should choose based on how long you need to pay off the balance fully.

How to choose the best balance transfer card

When you are making a comparison between balance transfer promotions you should first look at the interest rate. Find the lowest rate that you can according to how long you need to pay off your debt. Most 0% balance transfer cards will give you up to six months to repay the balance in full before the interest-rate reverts to the standard rate. If it is possible to get your balance paid off within this time frame, this should be your card of choice.

If you think that six months is not enough time and you would need a year then look for the lowest rate on a balance transfer card that gives you up to 12 months to pay off your debt. There will be quite a range of interest rates for this type of card so carefully inspect your options before making an application.

If you have a large debt to handle and feel that these time constraints are too limiting you can look at long-term balance transfer cards. These credit cards will give you as much time as you need to pay off the balance. The interest-rate will be slightly higher than the 12 month or 6 month promotional rates offered, but they will still be much lower than the rates you are currently paying on your card.

Other things to compare

Take a look at the annual fees on your credit card when doing a comparison. Some cards charge as much as $200 for an annual fee. You can find a credit card that offers a good deal for a balance transfer and has a reasonable annual fee as well.

If you think that you can handle a 6 month or 12 month balance transfer time limit then you should look at the purchase rate on the card. Once your balance transfer has been paid off you will still have this card so it would be nice if it had a low rate for purchases.

Getting a balance transfer is good for your financial health when you have a large debt on your credit card. It may be the only solution that can possibly get you out of credit card debt. You should take advantage of all the benefits a card like this can offer while these great deals are available.

Editors Choice: Featured Credit Card Deals

	Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
Westpac 55 Day Credit Card	0% for 5 months (reverts to 19.59% )	3.99% for 6 months	$0	21.49%
Citibank Clear Platinum Card	11.99%	2.9% for 12 months	$99	21.74%