Balance Transfer: Smart Debt Fix or Costly Trap?

• Balance transfers can save interest if used with a clear plan to pay off debt before the promotional period ends.
• They are beneficial when consolidating debt or managing temporary cash flow issues, acting as a tool, not a crutch.
• Pitfalls include resuming spending, ignoring processing fees, and falling into the minimum payment trap, which can lead to higher interest rates later.
• Repeated transfers or high utilization can negatively impact your credit score and signal financial stress to lenders.
• To use responsibly, plan the exact monthly payment, commit to clearing the balance, and avoid new spending on the transferred card.

Why It Matters: Balance transfers are neutral tools; success depends on disciplined planning to eliminate debt, not just postpone it.