Loading
Tap on the profile icon to edit
your financial details.

Use Balance Transfers to Wipe Out $10,000 in Debt Rapidly

Your Details Done

Use Balance Transfers to Wipe Out $10,000 in Debt Rapidly

This post contains links from our advertisers. We may receive compensation when you click the links. SmartAsset maintains editorial integrity in writing. Editorial note: opinions, analyses, reviews or recommendations expressed are the author’s and have not been reviewed or endorsed by our advertising partners. Please see our advertiser disclosure for details.

Use Balance Transfers to Wipe Out $10,000 in Debt Rapidly

Moutaintop

Getting out of debt without ruining your credit score can be a very expensive process. However, there is a tried and true method savvy credit card users have been taking advantage of for years that can save you thousands & sharply reduce the time it takes to get out of debt. Follow this pair of simple steps to start making a debt free life a reality.

Step 1: Stop Paying Interest on Your Credit Card Debt Immediately

This may sound like the hard part, but it is far from it. In fact, you can get this process started in 5 minutes. How? With a 0% intro APR balance transfer.

A 0% intro APR balance transfer is a promotion many credit card companies offer to new customers to gain their business. These 0% promotions generally last for 6 to 12 months, though some offers are 15 months or longer. If you apply and are approved for one of these offers, you can transfer your high interest credit card debt to the new card and pay 0% interest on it. It is that easy.

Just how much you save will vary based on your interest rate, but on a $10,000 balance with a 16% interest rate you would be spending $150 a month on interest. If you make a $250 payment, your balance would only decrease to $9,900 even though you’d be $250 poorer. That is a slow road to years and years of debt.

Step 2: Pay Off As Much of Your Debt As Possible During The 0% Period

Once you’ve transferred debt to your new 0% card, every payment you make will go directly to paying off your debt. While it may be tempting (or even necessary) to reduce your monthly payment, the goal should be paying down your debt consistently and increasing payments whenever possible.

Below you can see the huge difference doing a balance transfer will make on your credit card debt. For this example, we used the BankAmericard® Credit Card.

As you can see, consistently making $250 payments on a credit card with a regular interest rate doesn’t make much of a dent on your credit card balances. On the other hand, those $250 payments go a long way on a balance transfer card, wiping out more than 35% in just 15 months!

As you can see, opting to do a balance transfer is a no brainer decision that can literally save you thousands on interest. All you need to do is move your balance to one of the industry leading offers below to start saving.

Top 0% Intro APR Balance Transfer Offers:

Barclaycard Ring™ Mastercard®

Barclaycard Ring™ Mastercard®

  • 0% Introductory APR for the first 15 months on purchases. Plus, you'll get a 0% introductory APR for 15 months on Balance Transfers made within 45 days of account opening. After that, a variable APR will apply, 13.99%
  • No balance transfer fees
  • No foreign transaction fees
  • Chip technology, so paying for your purchases is more secure at chip-card terminals in the U.S. and abroad
  • Free online access to FICO® Credit Score
Regular APR Annual Fee Intro Purchase APR Balance Transfer Intro APR Balance Transfer Fee
13.99% Variable $0 0% for 15 months 0% for 15 months (on balance transfers made within first 45 days) None
Regular APR 13.99% Variable
Annual Fee $0
Intro Purchase APR 0% for 15 months
Balance Transfer Intro APR 0% for 15 months (on balance transfers made within first 45 days)
Balance Transfer Fee $0 Intro Balance transfer fee during first 60 days of account opening. After that, the fee for future balance transfers is 3% (min. $10).

Chase Freedom Unlimited℠

Chase Freedom Unlimited℠

  • Unlimited 1.5% cash back on every purchase - it's automatic
  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 15.99-24.74%. Balance transfer fee is 5% of the amount transferred, $5 minimum
  • Redeem for cash - any amount, anytime
  • Cash Back rewards do not expire as long as your account is open
  • No annual fee
Regular APR Annual Fee Intro Purchase APR Balance Transfer Intro APR Balance Transfer Fee
15.99% - 24.74% Variable $0 0% Intro APR on Purchases for 15 months 0% Intro APR on Balance Transfers for 15 months $5 or 5% of the amount of each transfer, whichever is greater
Regular APR 15.99% - 24.74% Variable
Annual Fee $0
Intro Purchase APR 0% Intro APR on Purchases for 15 months
Balance Transfer Intro APR 0% Intro APR on Balance Transfers for 15 months
Balance Transfer Fee $5 or 5% of the amount of each transfer, whichever is greater

Editorial Note: This content is not provided by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the issuer.

Advertiser Disclosure: The card offers that appear on this site are from companies from which SmartAsset.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). SmartAsset.com does not include all card companies or all card offers available in the marketplace.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.