Transferring Credit Card Debt

A bank profits from getting in funds at one level (Deposits) then lending the money back out at a higher level (difference equals profit) so giving you money for no return (zero percent interest) doesn’t make economic sense.

Statistically though most people won’t actually get their transferred balance paid off during any interest free period, therefore short term loss means a longer term gain for the bank once the interest free period has finished.

Now this doesn’t make it right or wrong it simply means if you are transferring your balance then you owe it to yourself to make sure you maximise the opportunity you are being given.

Remember your actions are leaving a financial fingerprint so if you are considering transferring that credit card debt make sure you are doing it with a plan and not a wish.

Here’s a few things to take into account if you’re considering transferring balances.