Advice | Credit card debt hit a record high. Here’s one way to pay it down.

the example above, if the transfer fee is 3 percent, it would cost

$174 to move the debt to another card. It’s not a lot of money, but it’s wasted if you don’t pay off the balance in time.There’s also been a small uptick in the number of cards charging 4 percent or 5 percent for a balance fee instead of the usual 3 percent, according to Matt Schulz, chief credit analyst at Lending Tree.When you apply for credit, a lender will pull your credit report, and that action is called a “hard” inquiry.

Depending on your credit history, a hard pull might knock your credit score down five to 10 points for a few months, Rossman said. Despite the temporary hit to your credit score, the balance transfer could help your credit score in the long term.It should lower your overall credit utilization ratio because you have more credit, but also you’re paying down your balance more quickly,” Rossman said. “So I wouldn’t really worry so much about the credit score impact. I think you have more to gain.It’s a long shot, but check if your current lender is offering a promotion for a zero-percent balance transfer offer.

Be realistic. Would you be better off sticking with the card and interest rate you have? After the promotional period, you may face a higher interest rate if you haven’t paid off the balance.term expires, consumers may face rates of 17 percent on the low end or close to 30 percent on the higher side, Rossman said.If you have a personal finance question for Washington Post columnist Michelle Singletary, please call 1-855-ASK-POST .

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