Balance Transfer

Moving a balance (debt) from one credit card to another. This is often done with special checks or forms, or may be offered as an option on some credit card applications. The usual reason is to shift an ongoing debt to an account with a lower interest rate. Consumers often play a “rob Peter to pay Paul” game where they constantly transfer balances from one card to another to avoid interest charges. This balance transfer game is dangerous and can catch up with you.

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