Pay off $6,000 on a card at 21.52% with $400 a month and you'll hand over about $1,052 in interest across 18 months. Move it to a 0% card with a 3% fee and the same $400 a month clears it in 16 months for $180.
That's an $870 swing. But only if you avoid three very common traps.
Why people are looking at 0% offers right now
Americans still owed $1.25 trillion on credit cards in the first quarter of the year (New York Fed). The average rate on card accounts that paid interest was 21.52%, according to the Federal Reserve's latest figures (Fed G.19).
At that rate, every month you can spend at 0% is real money saved.
How a balance transfer works
You open a new card, often one with a 0% introductory APR, and move your existing card balance onto it. You usually pay a balance transfer fee, a percentage of the amount you move, added to the new balance.
The rules that protect you (CFPB):
- An introductory rate must last at least six months.
- The issuer has to tell you how long it lasts and what rate kicks in afterward.
- The issuer can't take the intro rate away early, unless you're more than 60 days late on a payment.
Run the numbers
$6,000 balance, $400 a month:
| Stay at 21.52% | 0% transfer, 3% fee | 0% transfer, 5% fee | |
|---|---|---|---|
| Upfront fee | $0 | $180 | $300 |
| Months to pay off | 18 | 16 | 16 |
| Interest paid | ≈ $1,052 | $0 | $0 |
| Total extra cost | ≈ $1,052 | $180 | $300 |
Illustrative: assumes the 0% rate lasts at least 16 months, no new purchases, and on-time payments. Fees of 3% and 5% are examples; check the offer's actual fee.
The fee is the price of the deal, and here it's a bargain. Now the traps.
Trap 1: The 0% ends before you're done
When the intro period runs out, whatever's left starts charging the regular APR. Divide your balance (plus fee) by the number of 0% months. That's your real monthly payment, not the minimum.
Trap 2: New purchases on the same card
The CFPB warns that new purchases on the transfer card can start charging regular interest right away. And if you're carrying a promotional balance, you can lose your grace period, so interest on new purchases starts immediately unless you pay the entire balance (CFPB).
Translation: the transfer card is for paying off debt. Leave it at home.
Trap 3: "Deferred interest" isn't 0%
Some store cards and financing deals offer deferred interest. If you don't pay everything by the deadline, interest can be charged back to the start (CFPB). A true 0% APR doesn't do that. Read which one you're getting.
Fee check
- Balance transfer fee: a percentage of what you move. Compare it with the interest you'd pay staying put.
- Annual fee: some transfer cards have one. Add it to the cost.
- Late payment: can cost a fee, and being 60+ days late can end your intro rate.
- The rate after the promo: know it before you sign. It's what you'll pay on any leftover balance.
Is a transfer right for you?
- Yes, probably: you can pay the balance off within the 0% window and you'll stop using the old card for new debt.
- Maybe not: you'd still be carrying most of the balance when the promo ends, or you're likely to keep spending on the cards.
- Not now: you're already behind on payments. Talk to a nonprofit credit counselor first.
Do this today: take your balance, add 3% or 5% for the fee, and divide by the number of 0% months on the offer you're eyeing. If you can pay that number every month, the transfer works. If you can't, it's just a delay.
Sources
- Federal Reserve, G.19 Consumer Credit , May 7, 2026
- Federal Reserve Bank of New York, Household Debt and Credit Report, Q1 2026 , May 12, 2026
- Consumer Financial Protection Bureau, How long can I keep a low rate on a balance transfer?
- Consumer Financial Protection Bureau, You could still end up paying interest on a zero percent credit card offer
Rates, fees and offers change often and depend on your credit and the issuer. This article is for general information, not individual advice.