Balance Transfer Cards 101: Everything You Need to Know

So yesterday I was talking to a friend that got a credit card with a promotion on it, the deal was he had 18 months to pay it off interest-free. The problem is that now he owes $5500, and only has left 60 days before they charge him interest.
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1. What is a balance transfer Card
These credits cards are designed with a special promotion to move debt from one party to the next
And they compete with each other by giving you 12-18 months usually of free interest with those balance transfer
Meaning the goal is to get you to move your debt from one party to the next
Why do they do this?
Because they understand that it is very likely that you will not pay the credit card in full
It's also very likely you will start using the card also, and potentially even get a bigger balance
This means they will make some money from you
For example:
My friend with the 5,500 in debt on one credit card, wants to move it over to another balance transfer card with a special promo
So he applies and gets accepted to the Discover it Balances transfer card ( he transfer the balance and now as 18 months to pay it off interest-free)
If he does great but if he doesn’t they will make 24% a year from their investments.
2. The Truth ( nothing in life is free and neither are these transfers )
Of course they will have certain fees involved but the fee is better than paying a ton of money in interest
Those fees are really just a balance transfer fee that is usually going to be around 3-5% of the balance you are transfer
But remember this cheaper than paying 24% in interest every year
So let's go look for the Best Credit Cards:
Citi Simplicity Card
Discover it Balance transfer
Citi Double Cash Card
Advice: pick a card that once you are done paying you can continue to just use with the one small method.
3. Here is Some Advice
Use the one bill those with the credit cards and do not go back into debt
You can also transfer Medical Bills and more with balance transfer (it's not just credit card debt )
But you be careful because if you’re not you will get hurt
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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.