Can I Use Balance Transfers To Pay Off Debt?
Yes, you can use balance transfers to pay off debt and in fact, you can use balance transfers to do whatever the heck you want. You could, if you were to be so bold, take the money an invest it in the stock market, fund a new business idea, or just use lit hundred dollar bills to start a campfire. The credit card companies don’t care what you spend that money on… as long as you make regular payments on it. That’s why balance transfer arbitrage works so beautifully!
For the purposes of arbitrage, I would strenuously recommend against using the balance transfer for anything other than to pay off a higher interest debt or stick into a high yield savings account. Investing it is a huge mistake. Spending it on frivolous things is a huge mistake. You want to make debt work for you, not the other way around. So, stick to paying down debt or saving to earn the arbitrage interest – avoid everything else!