Fig. 1
From: Effects of balance transfer offers on consumer short-term finance: evidence from credit card data
BT offer procedure. (a) The detail on 18 contracts is listed in Table 1. (b) BT balance transfer, PR promotional rate (%), FFL fixed-for-life rate (%), PD promotional duration (months). (c) If a consumer decides to accept the offer, fee listed in contract should be paid and two different options are available. PR is usually lower than FFL. However, the PR option is limited in PD. After determining PD, a consumer should pay his regular purchase rate around 12–20%. On the other hand, the consumer can enjoy FFL without any period limitation. The consumer can choose both options only if the sum of borrowed balances is within his credit limit