The Federal Reserve announced on Monday that outstanding credit card debt hit a new high in November, increasing by $11.2 billion to $1.023 trillion. "This record should serve as a wake-up call to American consumers to make 2018 the year they get their credit card debt under control," says Matt Schulz, the senior industry analyst at CreditCards.com.
One way to actually make that happen is by using balance transfer cards, which Schulz says can be a "godsend."
Balance transfer cards, when used correctly, can help you pay off your credit card balance and get rid of your debt. But most Americans who could benefit from them have never used them and most millennials in the red don't even understand how they work, according to a survey from CompareCards.com by Lending Tree.
The cards essentially let you move your credit card balance from a high-interest card to one that charges you no interest during a 0 percent introductory period, which typically lasts from six to 21 months, depending on the card.