A balance transfer to a card with 0% APR can buy you time to pay off your debt, if you're smart about it (2024)

• A 0% APR introductory offer on a credit card can buy time to pay off credit card debt without accruing any more interest.
• These offers expire, though, so it’s crucial to have a plan to pay off the balance within the allotted period of time, or to do the math and see if it’s worth transferring your balance to a second card with a 0% APR before your time runs out.
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Credit card debt can be hard to overcome. Paying the minimum amount due just keeps your balance intact and keeps your credit in good standing. But, you’re essentially just paying the interest fees to the creditor and your balance really never gets paid off.

If you’re struggling to pay off your credit cards, there’s an easier way, one that can help you focus on paying off the principal balance and save on interest: Get a credit card with an introductory 0% APR.

0% APR on balance transfers can be a debt-payoff tool

This promotion offers 0% APR on your balance for a set period of time, often 12 to 24 months. After the promotion ends, interest is charged on any unpaid balance. The requirements for such a promotion vary, but generally, banks require the applicant to have a decent credit score and make on-time payments each month to continue to participate in the promotion. So, it’s best to read the fine print know the criteria well before you sign for a new card and transfer an existing balance.

Some credit cards with an introductory 0% APR include:

• Citi Simplicity® Card. Citibank offers zero percent interest for 21 months, then a variable APR of 16.49% to 26.49% applies. They charge a transfer fee of $5 or 5% of the transferred balance, whichever is greater. This card also comes with the promise of no late fees, no penalty fees, and no annual fees, ever.
• Citi® Double Cash Card. This promotion is for 18 months, then a variable APR of 15.74% to 25.74% applies. This card has a transfer fee of $5 or 3% of the transfer balance, whichever is greater.
• Chase Freedom Unlimited. Chase offers 15 months of interest-free benefits on balance transfers, then a variable APR of 16.99% to 25.74% applies and $5 or 5% of the amount of each transfer, whichever is greater.
• Capital One® Quicksilver® Cash Rewards Credit Card. CapitalOne offers the 0% interest promotion for 15 months, then a variable APR of 15.74% to 25.74% applies, with 3% transfer fees.
• Discover it® Balance Transfer. Discover offers 18 months with zero interest on balance transfers, then a variable APR of 13.74% to 24.74% applies, and a 5% ongoing balance transfer fee. There's an initial transfer fee of 3%.

But just signing up for a card with a 0% interest offer doesn't automatically eliminate your debt - it just buys you time to pay off your debt without accruing more interest. To take advantage of the saving benefit of the promotion, plan on paying off your balance in full before the promotional period ends. Otherwise, you'll pay interest on your remaining balance.

Consider making your payments as if they are set installments: Divide your total balance by the number of promotional months, minus one month. So, if your promotional period is for 18 months, make it a point to pay the balance in full within 17 months, just to ensure that you don't go over the promotional period and risk being charged interest.

If you're not able to pay off the balance in time, you might want to transfer it to a new card. You can open up a new card with a similar promotion and transfer the balance again. You'll have to pay the transfer fee, which ranges between 3% and 5%, so do the math to make sure you'll save much more in interest.

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