Using a credit card strategically can help you escape high-interest debt, even though this sounds counterintuitive.
The key is balance transfer cards. These products offer a 0% APR promotion period, typically lasting 6 to 21 months, on transferred balances. If you carry $5,000 at 18% APR on a standard card, you pay roughly $750 in interest annually. Moving that balance to a 0% card eliminates interest charges during the promotional window, letting every payment chip away at principal.
Balance transfer cards work best when you meet two conditions. First, you need a credit score of at least 670, though 700+ opens access to the best offers. Second, you must commit to paying down the debt during the 0% period. After the promotion ends, the card reverts to a standard APR, often 18% or higher.
Chase Slate Edge and Citi Simplicity both offer 21-month 0% periods on balance transfers with no annual fee. American Express EveryDay Preferred extends 0% for 15 months. These cards typically charge a 3% balance transfer fee, deducted upfront. On that $5,000 transfer, expect to pay $150, but you save hundreds in interest.
The danger is simple: don't accumulate new debt. If you transfer $5,000 then rack up another $3,000 on the same card, you've created two problems. The new purchases accrue interest immediately while you focus on the transferred balance.
Another option involves 0% APR purchase cards combined with a personal loan. Pay off your credit cards with a personal loan charging 8% to 10% APR. This consolidates multiple high-interest debts into one payment, usually with a fixed term.
The math matters. Calculate your current interest costs