1. What is a 0% Balance Transfer?

A 0% balance transfer allows you to move your existing credit card debt to another card with a 0% interest rate for a promotional period. In Malaysia, this is offered by many banks as a way to help customers manage debt.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( T \) — Time to pay off (months)
• \( P \) — Principal balance including transfer fee (MYR)
• \( D \) — Monthly payment (MYR)

Explanation: This calculation assumes no interest is charged during the promotional period (0% interest) and that you make fixed monthly payments.

3. Importance of Calculating Payoff Time

Details: Knowing your payoff time helps ensure you clear the debt before the promotional period ends, avoiding high interest rates that typically apply afterward.

4. Using the Calculator

Tips: Enter the total amount you're transferring (including any transfer fees) and your planned monthly payment. The calculator will show how many months it will take to pay off the balance.

5. Frequently Asked Questions (FAQ)

Q1: What happens if I don't pay off during the 0% period?
A: After the promotional period ends, standard interest rates (typically 15-18% p.a.) will apply to any remaining balance.

Q2: Are there fees for balance transfers?
A: Most banks charge a one-time fee (usually 1-3% of transferred amount) which should be included in your principal calculation.

Q3: Can I make additional payments?
A: Yes, making additional payments will reduce your payoff time. Recalculate with your new payment amount if you change your payment strategy.

Q4: What's the minimum payment requirement?
A: Banks typically require minimum payments (e.g., 1-5% of balance). Ensure your planned payment meets or exceeds this.

Q5: Should I close my old credit card after transferring?
A: Not necessarily, but avoid using it for new purchases that could add to your debt burden.