Moving existing credit card debt from one card to another with a lower interest rate, often introductory 0% APR for a set period, represents a common financial strategy. For example, someone with a high-interest balance might shift it to a card offering a promotional rate to save on interest payments and potentially pay off the debt faster.
This debt management technique can provide significant financial relief, particularly for individuals carrying large balances. By minimizing interest charges, more of each payment goes towards reducing the principal. This approach historically gained popularity as credit card usage increased and consumers became more aware of interest rate disparities. A well-executed transfer can contribute significantly to improving credit utilization and overall financial health.
