A balance transfer moves an existing debt — usually a credit card balance — from one account to another, typically one with a lower or 0% introductory APR. The goal is to spend less on interest so more of each payment goes toward paying down what you actually owe.

How a balance transfer works:

  1. You open or use a card that offers a low promotional APR on transferred balances.
  2. You request a transfer of the balance from your higher-rate card.
  3. During the promotional period, interest is low or zero, so payments reduce the principal faster.
  4. You focus on paying the balance down before the promotional period ends.

What to watch for:

  • Balance transfer fee — many transfers carry a fee, commonly a percentage of the amount moved. Factor it into your savings.
  • The intro period ends — once it does, the standard APR applies to any remaining balance.
  • New purchases may not get the promotional rate.
  • It does not erase debt — it is a tool to pay debt off faster and cheaper, and works best with a clear payoff plan.

When it makes sense: a balance transfer can be a smart move if you have higher-interest debt, can realistically pay it down during the intro window, and avoid running up new balances. Review the terms on RMO credit cards or contact RMO to talk through your options.