Carrying credit card debt is a common financial struggle, with over 103 million Americans holding balances at some point each year. While opening another credit card might seem counterintuitive when you’re already in debt, a balance transfer card can be a smart move. Here’s how it works, and why it can save you money.
Why Balance Transfers Matter
The core issue with high-interest credit card debt is simple: too much of your payment goes to interest, not the principal. This makes it hard to make real progress. Balance transfer cards solve this by offering temporary low or zero APRs, giving you breathing room to pay down your debt faster.
Three Key Benefits of Balance Transfers
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Lower Interest Charges: High APRs mean you’re losing money just by having debt. A balance transfer to a card with a 0% introductory APR lets you redirect those funds toward the actual balance. For example, the Navy Federal Credit Union Platinum Credit Card offers 0% APR for 12 months on transferred balances, followed by a variable APR of 10.49% to 18%. Compared to the average credit card APR of 22.83% (as of August 2025), this is a significant advantage.
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Debt Consolidation: Juggling multiple credit cards is stressful. A balance transfer consolidates all your debt into a single monthly payment. This simplifies budgeting and reduces the risk of late fees. Streamlining payments means you’re less likely to miss one, avoiding additional charges.
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Manageable Large Purchases: Unexpected expenses can derail your finances. Instead of racking up interest on an emergency purchase, a balance transfer lets you spread the cost over time without excessive fees. The key is to calculate how much you need to pay monthly before the introductory APR expires.
How Much Can You Save?
Let’s look at numbers. The average credit card debt per borrower is $6,523 (as of Q3 2025). Paying this off in one year at an average APR of 22.83% would result in $834.50 in interest alone.
However, using a balance transfer card like the Navy Federal Platinum Card (with its 0% introductory period), you could pay $0 in interest, saving you the full $834.50. The Navy Federal Platinum Card also has no annual, balance transfer, cash advance, or foreign transaction fees, making it an even more attractive option.
Bottom line: Balance transfer cards aren’t just about debt management; they’re about reclaiming your money. By strategically leveraging these offers, you can accelerate debt repayment and save hundreds, if not thousands, of dollars in interest.
Sources:
1. Federal Reserve
2. TransUnion
