How a Credit Card Can Actually Help You Get Out of Debt

# How a Credit Card Can Actually Help You Get Out of Debt

Using a credit card to escape debt sounds counterintuitive. But the strategy works when you deploy a balance transfer card with a 0% introductory APR.

Here's how it functions. You move your existing high-interest debt onto a new card offering a temporary interest-free period, typically 6 to 21 months depending on the issuer and your creditworthiness. During that window, every payment goes directly toward principal instead of interest charges.

The math favors this approach for people carrying substantial balances. Someone with a $5,000 balance at 20% APR pays roughly $833 in interest over one year before paying down any principal. Transfer that balance to a 0% card for 12 months, and that entire $5,000 goes toward eliminating the debt itself.

Major issuers offer strong balance transfer options. Chase Slate Edge provides 0% APR on transfers for 6 months with no transfer fee for the first 60 days. The Citi Simplicity Card delivers 0% for 21 months on balance transfers, though it charges a 5% transfer fee. American Express EveryDay Preferred Card matches Citi at 21 months with a 3% fee on transfers up to $25,000.

The catch: these cards require decent credit. Most demand a score around 670 or higher. Additionally, missing a payment during the 0% period typically ends the promotional rate immediately, reverting to the card's standard APR, which often runs 15% to 25%.

Success hinges on discipline. You must stop using the old card, avoid new purchases on the transfer card, and commit to eliminating the balance before the promotional period ends. Use a balance transfer calculator to confirm you can pay off the