A balance transfer is when you move an existing debt (usually from a credit card) to another credit card — ideally one with a lower interest rate or a special promotional period. The goal is to reduce how much you pay in interest so you can pay off the debt faster.
In simple terms, you take your high-interest balance and move it to a card that gives you more breathing room.
Why People Use It
Many credit card companies offer introductory low or 0% APR for balance transfers. You might have 6, 12, 15, or even 18 months to pay off that transferred balance without paying interest.
During that period, you focus your payments on the transferred balance, not on mounting interest.
After the promotional period ends, the remaining balance will start to accrue the regular interest rate of the card.
So the trick is, transfer enough to benefit from the lower rate and have a plan to repay it before that promotional window closes.
Benefits & “Why It Might Be Useful for 55+
Interest savings: Instead of paying 15%–25% interest on your current card, you might put that debt on 0% or lower interest for a time.
Simplified payments: You can consolidate multiple card balances into one, making it easier to keep track.
Better control: It gives you a clear timeline to attack the debt, rather than being buried by interest.
For someone 55+, lowering interest and simplifying debt can remove stress and free up money for health care, living expenses, or savings.
Risks & Pitfalls to Watch Out For
Balance transfer fees
Many cards charge 3–5% of the amount you transfer as a fee. So if you moved $5,000, that could be $150–$250 right off the bat.
Missed payments = losing the deal
If you miss a payment or pay late, the card issuer might cancel the low or 0% rate, and your balance gets hit by high interest.
Not paying down during the promo period
If you spread out payments too thin, when the promo ends you might still owe a big chunk — now at a high regular APR.
Transfer caps & limits
The new card may not let you transfer your full amount. Also, card issuers typically don’t allow transfers from cards issued by the same bank.
Credit score effects
Applying for a new card prompts a “hard inquiry,” which can slightly lower your credit score temporarily. Also, if you use a large portion of your available credit on the new card, that raises your credit utilization, which can also affect your score.
How to Decide If a Balance Transfer Makes Sense (Step-by-Step)
List your debts
Write down how much you owe, current interest rates, and monthly payments.
Check potential cards
Look for cards offering 0% (or very low) intro APRs for balance transfers, check their transfer fees, and see how long the promotional period lasts.
Run the math
Compare what you would pay in interest if you keep the status quo vs. what you’d pay with the balance transfer (including transfer fee).
Apply and transfer carefully
Once approved, move the balance quickly (some cards only allow the promotional rate if the transfer is done within 30–60 days of opening the card).
Stick to your repayment plan
Pay down aggressively during the interest-free period. Don’t take for granted that you have “free money” — it’s temporary relief, not permanent.
Example: How Much You Could Save
Let’s say you owe $6,000 on a credit card at 20% APR. If instead you move that to a 0% balance transfer card for 15 months, you might avoid $900 or more in interest — even after paying a 3% transfer fee ($180). That’s a real saving if you can stay disciplined.
Tips & Best Practices
Don’t use the new card for new purchases unless you’re sure you can pay them off — new purchases may not enjoy the 0% rate.
Track your progress. Use a simple spreadsheet or app to monitor how much of your debt has been paid down.
Pay at least the minimum on other cards while the transfer is processing.
Set an alert for when the promo ends so you’re not caught off guard.