Do the math on a balance-transfer offer

Include the transfer fee, promotional period, post-promotion rate, and required monthly payoff amount.

Words to know

• Balance: The amount you still owe.
• APR: Annual percentage rate. It shows the yearly price of borrowing, including certain costs.
• Minimum payment: The smallest payment the lender requires by the due date.

The main idea

A 0% headline is useful only if the balance can be reduced before the promotion ends.

Use this lesson as a starting point. Check the current numbers, written terms, and dates that apply to you. If a detail is missing, leave it blank until an official record or qualified professional can confirm it.

What can change the answer

• APR, fees, balance, payment, and term work together.
• A lower monthly payment can increase total cost when repayment lasts longer.
• A payoff plan must cover every required minimum before extra money goes to one target.

Three things to remember

• Add the fee
• Know the end date
• Calculate the monthly target

Common mistakes to avoid

• Comparing loans by payment alone.
• Leaving a balance or due date off the debt list.
• Sending extra money without checking how the lender applies it.

Try these steps

• Read the offer terms
• Set a payoff calendar
• Stop new purchases on the card

Questions to ask yourself

• What is the total amount still owed?
• What will the debt cost if only required payments are made?
• Does the plan still leave enough for required bills and a small cash cushion?