Paying off credit-card debt is an uphill battle. If the majority of your minimum monthly payment is going toward interest, that makes the climb even more difficult.

Getting out from under double-digit interest rates with a zero-interest balance transfer can make a big difference provided you understand the risks.

Woman dealing with credit-card debt and in despair

 

Dear Mary: May I ask your advice?  I have a credit-card balance of $4,500 at 18 percent interest. My FICO score is 700. I’ve been paying just the minimum monthly payment for too many years but I am determined to pay this off in the coming 12 months.

Would it be wise for me to transfer this to a new CHASE Slate credit card that offers zero-percent interest with no fees for 15 months? Or should I keep what I have, bite the bullet and just pay it off over the next year? Mary Beth

Dear Mary Beth: Let’s look at the numbers. If you keep what you have and pay off the $4,500 at 18 percent interest over 12 months, you will make 12 payments of $412.56 each, for a total of about $4,950, of which $450 will be interest.

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