 TITLE: Should I Get a Balance Transfer Card or Debt Consolidation Loan? CONTENT: What Is a Balance Transfer?\n---------------------------\nA balance transfer generally refers to when existing debt is transferred to a credit card. You may be able to do this by moving a credit card balance from one card to another or by transferring money from your credit card to a bank account and then using the money to pay down debt.\nCredit card issuers often use promotional balance transfer offers to entice new cardholders, although you may also occasionally receive balance transfer offers on the cards you already have open.\nA balance transfer could help you save money if you receive a low promotional annual percentage rate (APR) on the amount transferred.\nOnce the 18-month promotional period ends, the standard variable APR of 13.99% to 23.99% can apply to the remaining balance. If you pay off the transferred balance during the promotional period, you won't be charged any interest on the debt. However, you will have to pay a balance transfer fee, which is 3% of the transferred balance or $5, whichever is greater.\nBalance transfer fees are common and are typically either 3% or 5% of the transferred balance, but there are cards on the market that carry smaller fees or don't charge any fee at all.\nReview the terms of the balance transfer offer carefully before opening or using a new card in order to avoid potential headaches. For example, the presence of a transferred balance may void your card's grace period. If the card doesn't also offer a promotional 0% APR offer on purchases, your purchases could accrue interest daily. Without a promotional purchase APR offer it's best to pay off the transferred balance before using the card for purchases. END