Avoid Balance Transfer Credit Card Traps That Can Increase Your Total Debt, Not Reduce It
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Avoid Balance Transfer Credit Card Traps That Can Increase Your Total Debt, Not Reduce It

Making payments on time, paying the balance during the introductory period and avoiding new debt are the best ways to stay on top of your balances

August 1, 2025

If you are struggling with credit card debt in North Carolina, balance transfer cards with zero percent introductory rates can help, if you use them wisely. These cards can accelerate your payoff, but hidden fees, rate resets and new charges can leave you owing more than you started with. Review the tips below before you transfer any balances.

  1. Balance transfer fees can add up quickly

    2. Most issuers charge 3 to 5 percent of the amount transferred, with a minimum fee per transaction. In North Carolina, that fee could cost you hundreds on a large balance. Compare offers from local credit unions, some, like SECU and Truist, offer lower fees for members—and calculate total transfer costs to make sure you still save on interest.

  2. Avoid new charges on your transfer card

    3. Any purchases on a balance transfer card usually incur interest at the standard purchase rate, which can exceed 20 percent APR. Payments often apply to the lowest-rate balances first, so new charges can linger and accrue interest. After you complete the transfer, tuck the card away or freeze it in a secure spot until the transferred balance is paid off.

  3. Making a late payment can cancel your promotional rate

    4. Even one missed payment may trigger the loss of your zero percent rate and trigger the card’s regular APR. North Carolina law requires issuers to give at least 45 days notice before raising rates, but you’ll still face higher costs if you miss a due date. Set reminders or enroll in autopay to ensure on-time payments.

  4. Not changing your spending habits will put you back in the same place

    5. Balance transfers do not solve underlying spending issues. Track your expenses using a budget or apps like North Carolina 2-1-1’s financial tools, and focus on reducing nonessential purchases. Create a payoff plan that allocates every extra dollar to your transferred balance until it reaches zero.

Additional North Carolina resources

  • NC Department of Justice Consumer Protection Division: file complaints and get guidance on credit card issues
  • Credit counseling agencies: nonprofits like Consumer Credit Counseling Service of Greater Charlotte offer free or low-cost debt management plans
  • State Employees’ Credit Union and local credit unions: compare low-fee balance transfer offers and member benefits
  • AnnualCreditReport.com: check your credit reports from all three bureaus for free to catch errors

By understanding fees, avoiding new charges, keeping up with payments and changing spending habits, North Carolina consumers can use balance transfer cards as a tool to reduce debt rather than a trap that increases it.