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For example, if you transfer $6,000 in credit card debt to a card offering 0% intro APR for 18 months, you could pay off the full amount by making $333 monthly payments with no added interest charges.
A balance transfer credit card offers a way to pay down high-interest debt within a 0 percent introductory period, helping you to consolidate and pay off what you owe faster.
Consider how long it will take to pay off your credit card debt compared to the promotional period so you don’t get stuck with a higher interest rate after the 0 percent intro APR period is over. 4.
And current credit card interest rates hover above 20 percent, which means high interest charges on outstanding card balances. There may also be a lack of education around credit card debt.
Since the example omits interest, any payment order could pay off the debts in the same amount of time, but the snowball method avoids long waits between successive payoffs. If the debtor had prioritized debts in the reverse order, the first payoff (Card A) would have taken ten months and the rest an additional seven.
If you make a $30 minimum payment on your credit card every month, it will take 73 months (more than six years) to pay off your debt in full — and you’ll pay a whopping $1,175 in interest ...
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