2) You have a few credit cards that you are currently paying the minimum payment on, which have high interest rates. You cannot pay it all off before the end of the month and as a result have only been paying the minimum. Recently you receive an offer for 0% balance transfer and think it is a good idea to transfer your balances from the various credit cards in order to pay it off faster without any more interest or finance charges incurred.

1. 2a) Explain at least 3 ways that credit card companies make money on balance transfers. 2b) Explain 3 ways on how you would use a balance transfer correctly and win in the balance transfer game.