A balance transfer is a method of transferring existing credit card obligations to another credit card in order to pay off old debt. The major goal of a balance transfer is to obtain a low interest rate and avoid paying off credit card debt on your current card.
Frequent balance transfers, on the other hand, are not a long-term solution. Frequently, it's more advantageous for the customer to take out new credit cards with low interest rates for a set duration than it is to keep old ones.
If you have an outstanding debt of Rs 30,000 on your credit card and make interest payments of Rs 2,000 each month, it will take approximately six years to pay off the debt.However, if you can reduce your monthly payment to Rs 1,500 per month, you will have paid off your debt in three years.
Balance Transfer, Credit Card
