A balance transfer is the transferring of debt from one revolving credit account (like a credit card) to a another revolving credit account which assumes the previous debt, and provide a new interest rate and terms for the account.

We have all received the offers in the mail, transfer your balance and get 0% rate. Well many people have save thousands in interest by doing these balance transfers.

Many of these offers come with a 0% introductory rate for 6 months. A way to save on your higher interest balances is to transfer from account to account every time the introductory rate expires, just make sure there are no Balance transfer fees.