3 Ways Balance Transfers Help You Manage Debt and Save Money

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Carrying credit card debt can be very tough on your finances. If you’re struggling to keep up with payments, you’re not alone. According to Ramsey Solutions, it’s estimated that 103 million Americans carry credit card debt at some point during the year, which is approximated from the fact that 82% of adults have at least one credit card, and 47% of those cardholders carry a balance at least once a year.

Therefore, opening another credit card when you’re already in debt might not sound wise, but a balance-transfer card, like the Navy Federal Credit Union Platinum Credit Card, can actually be a smart move depending on your situation. 

Here are three ways a balance-transfer card can help you manage debt — and how much money it can save you.

1. You’ll Pay Less in Interest Charges

If you have a substantial credit card balance and a high APR, a considerable part of your monthly payment is going toward interest. This makes it tough to even put a dent in your balance, let alone pay it off entirely. 

But a balance transfer can make a huge difference. Moving your balance to a card with a low APR will allow you to pay less in interest, so you have more money to put toward the principal.

For example, the Navy Federal Credit Union Platinum Credit Cardhas a 0% intro APR for 12 months from account opening for balances transferred. After the 0% introductory APR period, a variable APR between 10.49% and 18% applies. Plus, there are no transfer fees.¹

Compare that to the average credit card APR: As of August 2025, the average APR for credit card users carrying a balance is 22.83%, according to the Federal Reserve¹. 

2. You Can Consolidate Credit Card Debt

Trying to pay down debt on one credit card is difficult enough. Things just get even more overwhelming when you’re paying off multiple cards.

Opening a balance-transfer card can help, because you can consolidate your debt into one monthly payment. This will be much easier to manage and will lower your risk of late fees — and you may end up paying less interest overall.

3. You Can Pay Off a Large Purchase Over Time

Sometimes you need to make an expensive purchase, but you don’t necessarily have the funds on hand to cover it. Maybe your washing machine breaks unexpectedly, and you don’t have the cash to replace it.

A balance-transfer card can help make this expense more manageable, because you can make payments without racking up excessive interest fees. Just transfer the balance to your new credit card and calculate the amount you’ll need to pay each month to resolve your debt before the end of the introductory APR period.

Here’s How Much a Balance Transfer Could Save You

Credit card interest can add up fast, significantly increasing your total balance. 

According to the Federal Reserve, the average APR for credit card users carrying a balance is 22.83%, as of August 2025¹. The average credit card debt per borrower is $6,523, as of the third quarter of 2025, according to TransUnion².

Hypothetically, if you decided to pay this debt off in one year, your monthly payments would be $613.12. Overall, you would spend $834.50 on interest.

However, if you opted for a balance transfer, you wouldn’t be paying this much. For example, the Navy Federal Credit Union Platinum Card offers a 0% introductory APR for 12 months from account opening. After that, a variable APR between 10.49% and 18% applies.

In this scenario, you would pay $0 in interest and save a total of $834.50 by opting for a balance transfer. 

Also, the Navy Federal Credit Union Platinum Card also has no annual, balance-transfer, cash-advance or foreign-transaction fees, so you would pocket this entire amount. 

Click here to get started.

¹ https://www.federalreserve.gov/releases/g19/current/

As of 12/01/2025, rates range from 10.49% APR to 18.00% APR, are based on creditworthiness, and will vary with the market based on the U.S. Prime Rate. ATM cash advance fees: None if performed at a Navy Federal branch or ATM. Otherwise, $0.50 per domestic transaction or $1.00 per foreign transaction. Balance transfer offer: Application must be submitted by 03/31/2026. Offer valid for balances transferred from non-Navy Federal credit cards within 60 days of account opening. Maximum total transfer amount is limited to your available credit line. Balance transfers using convenience checks are excluded from this offer. If you transfer a balance with this offer, interest will be charged on purchases made with your credit card unless your purchases have a 0% APR or you pay the entire balance, including any transferred balances made under this offer, in full each month by the payment due date. Offer excludes Navy Federal Home Equity Line Platinum Credit Cards. Limit of one promotional offer at account opening. Navy Federal reserves the right to change or end this offer at any time.

² https://newsroom.transunion.com/q3-2025-ciir/

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