Do you have debt spread across several credit cards? Are you finding it difficult to manage? Are you open to any and all solutions?

Ideally, you’d quickly pay off each balance and avoid a similar situation in the future. However, this is easier said than done, especially when you’re drowning in debt.

But there’s a potential answer to your problem: a balance transfer credit card.

With this, you can transfer all your debt to the same credit card account, thus saving you money on interest and allowing for more efficient management.

If this sounds like a possible idea, here are several important questions to address:

  • How much credit card debt are you currently carrying?
  • How many credit cards do you have?
  • Are you familiar with the many different balance transfer credit card offers?
  • What is the introductory period of the credit card you’re most interested in?
  • What is the interest rate once the introductory period expires?
  • How much is the balance transfer fee?

Along with the five questions above, there’s one more that deserves your attention: did you do your math?

In other words, have you determined if you’ll actually save money by completing a balance transfer?

To calculate this, take into consideration the total amount of debt, the length of the zero percent introductory term, and the balance transfer fee. For example, if there’s a three percent fee, you’ll pay $300 to complete the transfer on a $10,000 balance.

Will you pay more than this fee in interest over the course of paying off your debt? If the answer is yes, a balance transfer may make sense.

These are the types of questions you should answer before deciding for or against a balance transfer credit card. Even if it takes you a few days (or longer) to collect the necessary information, it’s better than making a rash decision and hoping it works out.

Remember, there’s no such thing as a bad question when it comes to your finances. Clear the air by answering those above, among others, before you proceed.

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