The use of Credit cards is increasing rapidly. Spending money from a credit card is just like taking a loan from a bank and spending it. In such a situation, there comes a time when people do not have enough money to repay their debt i.e. to pay the credit card bill.

Through balance transfer, you can pay the bill of one card from another card. This process is called balance transfer. However, it is like taking another loan to repay one loan. Some people get help from this, while some people get caught in a big debt trap.

Suppose you have a balance on a credit card, but you are not able to pay it. If you think of paying it next month, then you will have to pay late fees as well as interest on that money for about a month. This interest can also be charged at the rate of 36-48 percent per annum. In such a situation, if you have another credit card, then you can transfer the balance from it at a very low interest rate.

There can be two ways to pay the bill of another card from any credit card i.e. to transfer the balance. The first way is that you have to call the customer care of the bank and get the balance transferred from them. The second way is that you transfer the balance yourself from the bank's app or website. However, for this, you will need card details. Its process is different in different banks.

If you do not transfer the balance, then you will have to arrange money from somewhere to pay the entire bill on your card. For this, either you will have to pay late fees and huge interest, or you will have to take a loan and pay interest on it too. On the other hand, if you transfer the balance, then in that case the extra money you will have to spend will be less than a loan. At the same time, due to not paying the bill, you will not come under the category of defaulting.

Balance transfer means taking another loan (payment from another card) to pay off one loan (credit card). If you use it too much, it can affect your CIBIL score. A big problem in this is that if you use balance transfer for different cards many times, then while paying off the loan, you can get trapped in the trap of a new loan.