Definition
Moving credit card debt to a new card offering a 0% introductory APR, typically for a 3-5% fee. It buys time to pay the balance down interest-free, but only helps if the balance actually reaches zero before the promotional period ends.
Why it matters
For a disciplined payer, a transfer converts a 20%+ interest treadmill into a countdown clock where every dollar hits principal. For an undisciplined one, it just relocates the debt and adds a fee.
Example
Moving a $6,000 balance from a 24% card (about $120 of interest a month) to a 0% card for 18 months costs a 3% fee ($180). Paying $345 a month clears the debt inside the promo window and saves well over $1,000 in interest.
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.