Balance Transfer

DEFINITION

A balance transfer happens when debt from one credit card is moved to another card, usually to take advantage of a lower interest rate.

ELI5

It is like moving your credit card debt to a cheaper place. You switch the amount you owe to another card so you may pay less interest.

Other related terms

Term Insurance

Maternity Insurance

Price-to-Earnings Ratio (P/E Ratio)

Hedge Funds