Practice English Speaking&Listening with: Balance Transfers: Cut Your Interest Rate Now

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Hi I'm Nick Clements, co-founder of Magnify and let's talk about balance

transfers and saving some money. Balance transfer is the single best way to

significantly reduce the interest rate you're paying on your credit card debt

which will then help you pay that debt off a lot faster. So how does it work?

Let's say you've got debt sitting with a with a bank at a very high-interest rate.

You may not like it, in fact, I'm sure you don't, but all the other banks out there

they love it. And in fact, they want to compete for it because they make money

off of it. So if you go out and shop your debt around banks will actually come to

you and say look for 18 months or 24 months we'll give you a zero percent

interest rate on that debt. We'll charge you a one-time fee but a zero percent

interest rate on that debt. And so it's effectively you have the ability to go

out and move your debt and get a much lower interest rate which will

ultimately save you thousands. So the overall strategy that you need to

do for choosing a balance transfer is first, come up with a list of the debt

that you have, the interest rate on that debt, and the bank that it's sitting with.

So you have debt sitting on Bank of America to get a good balance transfer

offer, you can't go to Bank of Americathey're already getting your money.

That's like going to Time Warner saying I have Time Warner broadband can you

give me a bonus for switching? It doesn't work that way. You need to find another

bank to help reduce your debt. So, in this example we have Chase. So let's say you

find a really good balance transfer offer from Chase, Chase is happy to give

you a great deal if you move the debt from Bank of America to Chase. So what

you do is once you have your list of: this is the debt I have, these are the

interest rates that I'm paying, and these are the banks that I'm with, then visit

MagnifyMoney.comthe balance transfer pageput in how much debt you have, what

is your interest rate, and how much you can afford to pay a month, and you will

then see a list updated daily of the best balance transfer offers that are

sitting out there. You should then choose the best offer from a bank other than

the one your debt is already with. First, make sure you complete the balance

transfer within 60 days of opening the credit card. It's a great first step to

get the balance transfer, but that window will close and if you don't move the

debt before the 60 days, you lose the opportunity to get the promotional rate.

Second, take that credit card that you receive in the mail and just put it in

the freezerdon't spend on it. Because if you spend interest accrues right away.

And finally, make sure you have a plan for when the promotional period is over.

So if you have an 18-month balance transfer and in month 17 you still have

a balance remaining, come to look for the next best

balance transfer and then transfer that debt before the interest rate increases.

So if you have a plan you can make sure you keep your interest rate low and take

years off your debt repayment. Yes, there is a fee there is a one-time upfront fee

it is put into your balance of three percent, but over the time periodand

we'll do the math for you on MagnifyMoney.comyou'll see how much you save.

But there is a one-time upfront fee and that largely covers the bank's cost of

acquiring you as a customer.

The Description of Balance Transfers: Cut Your Interest Rate Now