A digital tool that assists users in determining the potential savings associated with moving high-interest credit card debt to a new card offering a lower interest rate, often for a limited introductory period. For example, an individual with $5,000 in credit card debt at an 18% APR could use this resource to project the interest savings from transferring that balance to a card offering a 0% introductory APR for 12 months, factoring in any applicable transfer fees.
The significance of this instrument lies in its capacity to empower informed financial decision-making. By quantifying the potential benefits of shifting balances, individuals can assess whether the move aligns with their financial objectives, such as debt reduction and minimizing interest payments. Historically, the complexity of calculating interest accrual and repayment schedules made debt management challenging; these resources simplify that process, promoting financial literacy and control.