You probably receive low APR balance transfer credit card offer on a weekly basis in your mail. However, while the low interest rate on your balance transfer seems very interesting, is it really worth it?

The good news is that there is a clear answer to know how much you save by doing a balance transfer. You just have to carefully read the balance transfer credit card pamphlet and do some calculation.

Looking at how much you do save in interest with a balance transfer.

My calculation will be based on the Platinum Plus MasterCard since it has a balance transfer rate of 1.99% for the first 10 months. It is probably one of the best balance transfer card for Canadians on the market.

So let’s assume you have a $10,000 debt at a regular credit card rate of 15% and you want to do a balance transfer over to the Platinum Plus MasterCard at 1.99% for 10 months.

Scenario #1: No Balance Transfer:

If you keep you 10K balance at 15% and you pay interest only during the next 10 months, you will have to pay $1,250 in interest ($10,000*15%/12*10 months).

Scenario #2: Do a Balance Transfer at 1.99%:

So if you don’t pay your credit card balance but you switch it to a 1.99% interest rate for 10 months, you will only have to pay $165 in interest ($10,000*15%/12*10 months).

So, you save about $1,100 buy doing a balance transfer…. Wait… I told you to read carefully the balance transfer credit card pamphlet. There is a balance transfer fee…

The Balance transfer fee for the Platinum Plus MasterCard is $7.50 or 1% of the amount transferred. Therefore, you will have to pay an extra $100 to proceed with the credit card balance transfer.

Therefore, you will almost save $1,000 over the span of 10 months with the balance transfer to the new credit card. However, you didn’t solve your problem completely as your credit card still needs to get paid.

In addition to this, be careful with the rate after the low APR balance transfer promotion is over. In the case of the Platinum Plus MasterCard, the interest rate after 10 months is 17.99%. You can surely find a low fixed credit card rate after this period to switch it back and start paying it down.

Christmas is coming and it means two things:

#1 You will have some shopping to do

#2 You will probably have to stop by Shoppers Drug Mart because the little one is having flu again

With the Shoppers Optimum Card, you can combine both activities and earn more rewards point for your money spent.

We all have to go to the drug store and especially during winter time. It would be great to be able to earn more rewards from all those purchases. The Shoppers optimum card provides a generous reward points system. You can earn points everywhere and more than double them when you shop at Shoppers Drug Mart.

By signing up to the Shoppers Optimum Card, you automatically get 2 gifts:

- You get 15,000 Shoppers Optimum points after your first purchase (worth up to $25 while shopping at Shoppers Drug Mart)

- Get a 1.99% APR on balance transfer for 6 months (maybe the best timing to open your Shoppers Optimum Card Account is after your do your Xmas shopping in order to transfer your credit card balance over to the Shoppers card).

How Do You Calculate Your Shoppers Optimum Points?

According to the Shoppers Reward Points Calculator, you can earn from 100 to 200 points for each dollar spent (depending on the category of what you are buying).

The Shoppers Reward Points Calculator is easy to use and show you exactly how many points your Shoppers Optimum Card will give you.

Shoppers Drug Mart Reward Schedule

Spending with your Shoppers Optimum Card thinking you will earn reward is great, but it is even better when you know exactly what to expect in term of cash back. So here is the Shoppers Drug Mart Reward Schedule (as of December 9^th 2009).

Points Required                                               Reward Value up to

7,000.………………………………………………….$10

15,000.………………………………………………..$25

30,000.………………………………………………..$55

40,000.………………………………………………..$75

75,000. ……………………………………………….$150

So if you are planning on transferring your balance to a low APR balance transfer credit card and you are looking for a reward credit card at the same time, the Shoppers Optimum Card could be a great option.