 TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: How Much Money Can You Save With a Balance Transfer?\n----------------------------------------------------\nThe amount a balance transfer can save you depends on the new interest rate you receive and the length of your 0% APR promotional period.\nFor example, say you have a $3,000 balance on a credit card with an APR of 16.3%. Your minimum monthly payment would be $90, and it would take you 152 months to pay off the balance by paying only the minimum. You'd pay $2,239 in interest charges in that time.\nNow imagine you transfer the $3,000 balance to a card that carries a 0% intro APR, a 3% balance transfer fee and an 18-month interest-free period. If you pay off your balance in 18 months, you'd pay $0 in interest, and your payment would increase to about $167 per month. You'd also pay a $90 balance transfer fee.\nIf you kept your monthly payment the same—$90 rather than $167—you'd take 36 months to pay off your debt. For 18 of those months, you'd pay interest. If your interest rate after the promotional period increased to 14.99%, you'd pay about $252 in interest in total. That's still nearly $2,000 in interest savings compared with not using a balance transfer card at all. END