 TITLE: What Happens After a Balance Transfer? CONTENT: Make The Most of the Intro Rate\n-------------------------------\nThe key to getting the most out of a balance transfer is to use that introductory period to pay down as much of your transferred debt as possible. A good way to start is to divide the total transferred balance by the number of months in the introductory period to determine the amount you'll have to pay every month to eliminate the balance by the time the interest rate increases.\nAs an example, let's say your new card offers a 0% interest rate on balance transfers for nine months. If you use it to pay off a $3,000 balance on one card and a $2,000 on another and pay a standard 3% transfer fee on those balances, your new card will have a starting balance of $5,150. Divide that amount by nine months and you get a rate of $572 per month to pay it off in full before the interest rate increases.\nIf you can cover that monthly amount for the duration of the introductory period, you should try to do so, even if it's a stretch, because that'll let you zero-out your debt without paying any additional interest. In rare instances, cardholder agreements stipulate that if you don't pay off your transfer balance before the end of the introductory period, you'll be charged interest on the entire transfer balance, just as if the transfer had been a regular purchase. Check the fine print in your card terms, and if that's the case, avoid using the card for balance transfers unless you're extremely confident you can pay them off in the allotted time.\nIn all other instances, if you can't manage the full monthly portion, take a look at your household budget and dedicate as much as you can to paying down the balance while the teaser interest rate is in effect. Even paying interest on whatever balance remains, you will still have reduced your total cost significantly. END