A balance transfer allows a person to transfer a balance from onecredit card to another credit card. There are many reasons why aperson would want to do this. First, a person might wish to transfera balance from one card to another if the new card is running aspecial with a 0 balance transfers option. This would mean that forthe balance that the person transfers in, there would not be anyinterest rate. Normally this 0% interest rate is just a promotionalterm and will end after the specified period of time, but that timeof 0% interest could allow a person to pay down a good portion, ifnot all of their credit card debt balance. If a person is strugglingto pay down their balance and they wish to find a way to get ahead ontheir debt payments, this could be an excellent option to pay downmore debt than the person normally would be able to. Anotherreason that a person would want to transfer their balances from onecredit card to another is if the current credit card company haschanged their fee structure. Many credit card companies change theirfee structure every year and the change in fee structure might take alow fee card and change it into a not so low fee card. This changecould cost a person a lot of extra money in fees and penalties, whichmight motivate that person to transfer their balance to another card.When a person makes the decision to transfer their balance toa new card they will need to pay close attention to the fee that isassociated with a balancetransfer. Many credit cards will offer 0 balance transfers butmany other credit cards will only offer up to a 20.0% percent balancetransfer to bring in a balance from another card. Many credit cardcompanies will even charge a fee for the person to transfer theirentire balance out of their credit card company and to anothercompany. These fees are legal and can negate the benefit of a 0%promotional period with the new credit card balance transfer.Transferring credit card balances can be a very wise financial move,as long as the terms are correct and the person does not lose moneyduring the transfer. Having a low fee credit card will help a personpay off their debt as quickly as possible.

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