Sharing Daily Discoveries About Personal Finance And Business Topics

Transferring Credit Card Debt To A Different Card

This is always something that I have heard people do in order to postpone having to pay off their credit card balance. Basically, one would simply transfer their existing credit card balance to a different card just before their due date which gives them more time to pay it off.

This topic came up as someone kept telling me how Citibank has this credit card offer where if you sign up then you can transfer all of your balances to this card for 0% interest and not pay for a year or something along those lines. Does this method actually help people eliminate credit card debt? To me it doesn’t really make sense to do so normally as when you transfer your balance there is usually some kind of fee associated with it and so you are ending up prolonging your debt while increasing it.

With this particular scenario though, I’m just trying to think from a business point of view where interest rates are where the card companies make money normally and so that makes me wonder if there is more to it as I guess it would kind of make logical sense to do so otherwise if you are currently struggling to pay an existing card that is charging you an arm and a leg in interest every month.

I always pay off my balances all at once, so this type of thing isn’t exactly something that I have done before nor does it excite me. But, for those who want to try it and are in Canada, apparently you can apply for the card at and you have to enter in the code “G76” to get the offer. If you are one of those people that are going to try this route, maybe you’ll have an interesting story to share with us afterwards on whether it helped or not overall.

3 Comments to Transferring Credit Card Debt To A Different Card

  • The Uk had a whole wave of Credit Cards offering interest-free deals. It was a customer acquistion strategy which I always felt was floored for the card companies. I had a friend who could easily pay off the balance he had on a credit card. However, it was sitting there with no interest. So he used his money elsewhere. When the free period was close to the end he would transfer the balance to another card with a new interest period.

    Personally I wasn’t really interested in following this, so I probably would have just paid it off. Maybe one strategy would be to transfer the balance to an interest free card and then add the interest you would have paid to your monthly payment and reduce the debt quicker without increasing it.

    In the UK there was no fee (that I remember) to transfer the balance. There was a space on most application forms to list the cards and the amount you wanted to balance transfer. For me, I would probably ‘transfer’ my balance to my bank line of credit, if anywhere, as the interest on that was always lower than a credit card (unless interest free of course!).

    Stewart Marshall 6/29/2007 12:06 pm
  • yeah, it is a cool service. All you need is to find a proper credit card to transfer the balance. Otherwise the deal will cause more problems than benefits. So, look through top credit card offers and try to consider everything, pay especially close attention to APR (intro and ongoing APR) and different fees.

    Rachel 11/14/2007 3:34 am
  • This one is great method, i also use to transfer the balance to another account before the due i will try this one.
    0% balance transfers credit cards

    rickymarc 2/4/2010 9:21 am

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