Are you like the majority of credit card holders and carry a balance on your credit card from month to month? Finance charges are money in the bank for credit card companies and finance charges can make it impossible to pay off your credit card balance if you only make the minimum monthly payment on your credit card. If you are tired of most of your monthly credit card payment being eaten up by finance charges, we have great news. Taking advantage of a balance transfer offer may be an easy way for you to reduce your debts and pay them off faster.

Lets look at a couple of different scenarios to show you the amount of total interest you will pay by carrying a credit card with a balance of $8,000 with an interest rate of 15%.

• Scenario #1 -- If you paid a fixed monthly payment of $160, it would take you over 6 years to pay off the balance and you would end up paying around $4,632 in total interest charges.
• Scenario #2 -- If you are someone that only makes the required minimum monthly payment, this $8,000 balance will take over 37 years, (yes I said YEARS), to pay off the balance and you would end up paying around $12,789 in total interest charges. To put this into perspective: the typical 30 year mortgage takes around 360 monthly payments to pay off, this scenario will take around 450 monthly payments to pay off.

The best scenario and ideal situation for anyone using a credit card would be to pay your balance in full on a monthly basis. If you choose to carry a monthly balance on your credit card, you should always make sure that you are paying more than just the minimum monthly payment. Calculate a fixed monthly payment that you can afford and pay that amount every month until your balance is paid in full. We have a couple of great calculators to help you out:

• Credit Card Payoff by Specified Date -- Great for figuring out how much you would need to pay on your credit card on a monthly basis in order to payoff your credit card debt by the date you specified. It will also calculate the number of payments and the total amount of interest that you will pay before the credit card debt will be paid off.
• Custom Credit Card Payoff Calculator -- Will allow you to figure out a couple of different payoff scenarios. It will either tell you how much money you need to pay or how many months it will take to payoff your credit card balance. You can play around with this calculator and figure out which payoff scenario is best for your situation.

If you are considering a balance transfer credit card offer, there are a couple of things that you should remember. The most important thing that everyone should know and remember is, NOT every balance transfer offer is a great deal. Here are a couple of other things for you keep in mind:

• 0% Intro APR Offers (not always the best way to go) -- A 0% APR credit card offer seems like the best way to save money, but in some instances you should pass on these types of 'Intro APR' offers. Although appealing, these types of offers are usually only in effect for just 6 - 12 months. After the intro period, the 'ongoing rate' can shoot up to 15 - 18 percent or more. This can be a higher interest rate then you were previously paying -- which can lead to more trouble if you haven't paid off your balance in full. Instead, we would recommend looking for a credit card that carries a fixed rate for the life of the balance. These types of offers can have an 8 - 10% Intro APR reduction over the standard ongoing rate which will last for the life of the balance and can add up to a significant savings for you. These offers can be harder to find and most generally are only offered to people with an excellent credit history.
• Research and Calculate Savings -- Doing some research now can save you a lot of headaches later. Before committing to any balance transfer offer, one of the most important things that anyone should be aware of is if the offer has ANY balance transfer fees. If the offer carries a balance transfer fee, is there a maximum or cap for the fee? Balance transfer fees can make an appealing balance transfer offer very costly. For example, a credit card offers a 0% Intro APR for 12 months and has a transaction fee of 3%. If there is a maximum transaction amount the balance transfer fee might be between $50 and $75, if there is not a maximum transaction amount the transaction fee would be $300. So if you are in the market for a balance transfer offer, hold out for a 'No Transaction Fee' offer or stick with one that has a low maximum fee cap. Also feel free to use our Custom Balance Transfer Savings Calculator to see how much you can save by taking advantage of a balance transfer offer.
• Let Credit Card Companies Compete -- Just like with other financial products, credit card companies will compete for your business. Before you commit to a balance transfer offer, you may want to call up your current credit card company and give them an opportunity to match or beat the offer you are considering. In some cases, especially if you have excellent credit and a good standing relationship, the bank will try to work on coming up with a competitive offer for you. If the bank can match it or make a better offer, you should consider staying since you already have an established credit relationship with the bank and best of all you won't need to go through the approval process again.
• Stop Spending and Put The Card Away -- Besides all the obvious reasons, there is a good reason why you should stop using your credit card that most people don't consider (or sometimes even know about or understand). Credit card companies apply your monthly payments toward the lowest rate balances before the higher rate balances. This means your savings will be reduced if you make transactions that are subject to higher APRs. For example, lets say you transfer a balance of $1,000 to a credit card with a 0% Intro APR for 6 months. While you are making your monthly credit card payments, you decide to use the credit card to purchase a $1,800 washer and dryer set. Your monthly payments would be applied to the $1,000 balance first and then applied to the $1,800 balance. Since the $1,800 balance is not reduced until the lower APR balance of $1,000 is paid off, the $1,800 continues to accrue finance charges. So to maximize the savings of any balance transfer offer, do not make any additional purchases until the balance transfer is paid in full.
• Read Offer Terms and Conditions Carefully -- Every financial situation is different, so the way a balance transfer offer will effect a situation is different for everyone. The most important thing you should consider before committing to a balance transfer offer is to be sure you understand all of the terms and conditions of the offer. Surprises are the worst things that can happen with a balance transfer offer. Figuring out which balance transfer offer is the best deal for you will require a little patience and a lot of discipline on your part but the benefits and savings of the offer will be worth it.

Finally, there is an old saying that I heard once -- ''What the big print giveth, the small print can taketh away!'' This is a great motto for balance transfer offers. Before committing to any balance transfer offer, make sure you know and understand all of the details of the offer. That very appealing offer can become your worst nightmare in some cases with just one late payment, sending your APR over 25% or higher. The best balance transfer offers are reserved for people with a solid credit history. A choosey, educated, and informed decision are the key to help ensure you find the best balance transfer deals.