Have you seen an offer for a 0% introductory APR credit card balance transfer? These offers can allow you to transfer an existing balance to a new account and save money on interest charges during the promotional period. These promotional financing offers can be incredibly valuable, but only if you use them in a way that helps you. Here are three of the top ways you can use a balance transfer.

1. Consolidate Multiple Credit Debts

It can be difficult to manage debt across several credit card accounts. With each account, you’ll have a separate monthly statement, along with its own due date. You may also have multiple online accounts or mobile apps to keep track of.

And when you have multiple payments to make each month, it’s simply more to keep track of, which can mean an increased likelihood of accidentally missing a payment. But by transferring your balances to a single new account, you can save time and energy by making just one monthly payment.

2. Reduce Your Monthly Payment Amounts

Another great way to use a balance transfer is when you’re looking to save money. When you transfer your credit card balances to a new account with a 0% introductory APR rate for balance transfers, you will not have to pay interest on the transferred balance during that promotional financing period. Keep in mind that many balance transfers include a fee equal to a certain percentage of the balance transferred, but this fee is often worth it if you can cut down on a large amount of interest paid.

It can be helpful to determine your potential savings by using an online balance transfer calculator.

3. Set a Goal for Paying off Your Credit Card Balances

One of the most effective ways to utilize a credit card with a 0% introductory APR rate for balance transfers is to use its limited timeframe as a “deadline” for paying off your balances.

During the promotional financing period there will be no interest charges on the balance transfer, so all of your monthly payments will go toward paying down your principal as long as you don’t make new purchases on the account. One strategy is to divide your entire balance by the number of months of promotional financing that your card offers. You can then pay off a set amount each month so that you have no remaining balance by the end of the introductory financing period.

Legal Disclaimer: This site is for educational purposes and is not a substitute for professional advice. The material on this site is not intended to provide legal, investment, or financial advice and does not indicate the availability of any Discover product or service. It does not guarantee that Discover offers or endorses a product or service. For specific advice about your unique circumstances, you may wish to consult a qualified professional.