0% Balance Transfers and Debt Reduction

by Michael on Apr 5, 2013

Transferring Money

A reader named Chris wrote in a few days ago to ask about credit cards with good 0% balance transfer offers for paying down debt.

Before the financial crisis, you could hardly turn around without bumping into a no-fee, long-term 0% balance transfer offer.

But then the landscape changed. At first, the 0% credit card offers almost completely dried up. And when they came back, they had relatively short promo periods and they typically came with transfer fees.

Good news, bad news

The good news is that the 0% promo periods have gradually re-lengthened. The bad news is that those transfer fees are still mostly in place, at least for true 0% offers.

But even with the transfer fees, these offers can be a powerful tool for getting out of debt. In short, you can transfer your high interest debt onto a 0% card and save a ton on interest payments while killing it off.

Just be sure to quit using your cards when doing this. Otherwise you’ll end up in a bigger hole than when you started.

Anyhoo… Since nearly all of the 0% offers out there now come with fees attached, I would recommend finding a card with the longest promo period possible.

Which brings us back to the original question…

Best balance transfers

Discover it Card

As of right now, one of the best 0% balance transfer offers on the market comes in the form of the Discover it Card.

This card offers 0% on balance transfers for 18 months with a 3% balance transfer fee and no annual fee. It also comes with 0% on purchases for 6 months plus up to 5% cash back rewards, but…

Remember: If you’re using this card as a tool for paying off your credit card debt, you don’t want to dig the hole deeper by making purchases with it!

Assuming that you’re coming from a high rate card (the current average is around 16% APR) you’ll save a ton of money and get out of debt way fast with this card, even after factoring in the transfer fee.

If you’d like to know more, click this link or the button below…

Apply Now Button


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