Using a balance transfer credit card is one alternative to debt settlement.
- How it Works: Transfer high-interest credit card debt to a new card with a low or 0% introductory Annual Percentage Rate (APR).
-
Pros:
- Opportunity to save on interest during the promotional period.
- Can simplify multiple payments into one.
-
Cons:
- Requires good credit to qualify.
- May involve balance transfer fees (typically 3–5% of the transferred amount).
- High interest rates kick in after the promotional period.
To learn more about how to Be Money Confident, join Best Egg Financial Health.