Basically gives you an overview of how much you save by transferring balances from a high interest credit card to a lower interest or 0% interest credit card.
How it works.
I have three cards with balances (in theory):
Card 1: 7154 balance at 7.24%
Card 2: 605 balance at 18.90%
Card 3: 2173 balance at 19.90%
I am looking for a new credit card with a introductory (balance transfer) rate of 0%. The one I found just happens to be 21 months at this 0% interest rate.
If I transfer all of the balances to this new card, I will save 1565 in interest over the duration of the promotional offer. After the promotion expires, I will save 27/mo. (assuming there is still a balance) compared to my current situation.
So for me doing the balance transfer seems like a fine idea.