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If you have credit card debt, improving your financial situation might feel overwhelming. However, a balance-transfer credit card can help. Choosing one that allows you to enjoy a low introductory APR so you can redirect your hard-earned money toward paying down the balance instead of just the high interest is a great way to get your budget in check.
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High-interest credit cards can send you down a debt spiral, which can impact your finances negatively for years. Considering the average credit card debt per borrower is also on the rise, according to TransUnion, this can feel like a no-win situation. As of last year, the average debt per borrower was about $6,329, so in 2025 there may be room for improvement.
If you’re tired of seeing a large portion of your credit card payments go toward interest, opening a balance-transfer card could be a smart money move. Here are some key signs it’s a good fit for your finances.
Having credit card debt can be tough, and it’s even more challenging when you’re carrying a balance on multiple cards. A balance-transfer card allows you to consolidate your debt so you have just one monthly payment.
This means you won’t have to juggle multiple due dates, making it easier to remember to pay your bill on time. Even better, consolidating your credit card payments into one could reduce the total amount of interest you’ll pay.
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If your current credit card has both a substantial outstanding balance and a high APR, much of your monthly payment goes toward interest. This can make it hard to pay off your debt. However, a balance transfer can help. Simply moving your balance to a credit card with a lower APR can help you pay down debt faster.
If your credit utilization isn’t great, a balance transfer may help. Your new balance-transfer credit card may offer a higher credit limit than your existing card(s), increasing your total available credit.
This matters because credit utilization plays a key role in both VantageScore and FICO credit scoring models. Plus, the lower interest rate on your balance-transfer card allows you to pay down the balance faster, boosting your available credit and improving your utilization ratio.
When you need to make a large purchase, your budget isn’t always equipped to handle the upfront cost. For example, if your washing machine unexpectedly breaks and you need to replace it, you might not have the funds to pay for it in full.
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