A 0% balance transfer credit card can save you a quite a bit in interest if you currently have balances on expensive credit cards and store cards.
Although you can transfer a balance to most credit cards, those that offer an introductory 0% interest period can save you the most money. These cards do still tend to charge a balance transfer fee when you move debt across, but they don't charge interest on the transferred balance for a set introductory period.
Most credit cards will let you transfer a balance, although this will be subject to the following conditions:
If you want to transfer a balance, you will normally have to pay a fee to the credit card provider you are transferring the balance to. This is usually in the region of 2% to 3% of the amount you transfer, although some fees can be higher while other providers charge absolutely no fee at all.
At the end of the introductory period, your transferred balance will go onto your lender's standard balance transfer rate, which will most likely be around 19% per year.
Unlike some interest-free loans you may get from furniture or electrical retailers, a 0% interest credit card does not mean that you don't make payments for an initial period.
You must pay at least the minimum payment every month: you can set up a Direct Debit to avoid missing it.
When you take out a new credit card to transfer a balance, the danger is that you put a balance back on your old card and end up with twice the problem.
If you don't want that to happen, you could:
Balance transfer credit cards have become increasingly competitive with their introductory periods, so shop around to get the best deal.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.