Balance Transfer Credit Cards

0% balance transfer credit cards are a great option for consumers who already have debt built up across several other credit cards and are looking to consolidate that debt onto one card.

You may think that it is pointless to just transfer the debt somewhere else, but many companies are currently offering interest free introductory periods for new customers wherein you can take advantage of the 0% interest period, pay off as much debt as you and then transfer the debt again once the interest free period is drawing to an end.

If you plan the transfers well it is possible to make use of 0% balance transfers in such a way that you can pay off all your existing debt without paying a penny in interest.

Whilst this does seem like a great scenario, the downside is that it can be a little time consuming hopping from one card provider to another, and it isn’t exactly welcomed by those credit card issuers either.

If you do decide to try your luck with 0% balance transfers it is important that you read up on the small print of the terms and conditions of the credit card issuer. Some credit card issuers are a little picky about customers transferring debts across and can charge a one-off fee for the right. Whether the fee is worth the discounted interest, this is a decision you’ll have to work out.

Some credit card companies has also been known to charge as much as 4% of the transferred sum to move your debts onto the card. Of course if it is only a small amount of debt then the interest charge may be ok, but this will surely add up to a pretty sum should the debt be large.

You may find that the more popular 0% credit card offers give you the added option of combining all manner of debts into one lump sum. If perhaps you’re struggling to pay off an overdraft or loan charges then it could be an option to transfer it all to the same 0% card, which in effect would offer a large saving on interest payments.

A very important factor to take in consideration with credit card balance transfer is that if you leave things until the last minute before seeking out a new 0% balance card to transfer the debt too then it can take a while to complete the transfer to the new card.

This poor planning can lead to premium amounts of interest getting applied to your account, needless to say, you should make the effort to stay on top of your debts. Also, be extra careful if you plan on using the same 0% credit card during an introductory period – it might not allow interest-free repayments on new purchases!