Things You'll Need:
- Credit card with a balance
- Low APR offer from another company
- Telephone
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Step 1
There are fewer low APR balance transfer offers than there used to be. Don't let that discourage you, because they're still out there. It's harder to find the 0% - more often it's .99, but you can do it. Often the offers will come with a statement from a bank card you rarely use. Keep an eye out for them.
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Step 2
Look for an offer that's over a period of 6 months to a year. Less than that is risky - you might not be able to pay it off before the interest rate goes back up.
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Step 3
Determine how much you can pay on your debt, and plan to stick to it.
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Step 4
When you transfer the balance, the bank will try to add a 'transaction fee' for moving the balance to their card. It's a percentage of the balance being transferred, and the number can be high. Don't go for it. I told the customer service rep 'I'm so sorry, I guess I can't do this.' She immediately waived the fee.
If you don't ask, you won't get. So ask! -
Step 5
Once the balance is transferred, DO NOT USE THE CARD FOR NEW PURCHASES! The bank may have in the fine print that any new purchases above the balance will be charged at their current APR, which can be 25% or more. Just put the card away and pretend you don't know where it is.
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Step 6
Always pay more than the minimum balance. Often the minimum balance is less than the interest that accumulates each month. You need to get out of debt, not into more!
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Step 7
About two months before your offer expires, start looking for another offer if you can't pay off the debt. The bank is just waiting for you to forget the day they can raise the APR sky-high on your remaining balance.
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Step 8
Use your other cards frugally, to keep your credit report strong and current, but pay cash whenever possible. Maybe if enough of us do it, the banks will realize they can't keep raising interest rates without losing customers. Good luck!
