How to do a 0% balance transfer

Last updated: Jul 29th, 2011
Feature by Cathy Adams
Credit cards  | 
One of the cheapest ways to manage debt is a 0% credit card, which lets you transfer an outstanding balance from an existing card onto a 0% deal for up to 24 months.

The best interest-free periods on balance transfer cards have been as high as 24 months.  First of all, check compare credit cards for the best deals.

Transfers are subject to a balance transfer fee typically up to 3% of the debt moved. Thereafter, the balance remains interest-free for the duration of the offer, but you'll still have to meet the minimum repayments each month.

While 0% balance transfers are a fantastic way of clearing nagging debts, it's important to play by the rules to ensure you don't get stung. 

Once the 0% offer has expired the interest rate will rise to a typical 17% meaning it's important to clear the balance in time. If you can't afford to do this make sure you transfer the balance to another 0% card.

It's also important to check the rate of interest you pay on new purchases. Many cards also offer 0% on new purchases but these offers are usually short-lived typically lasting around three months.

Always check the terms and conditions of the card before purchasing.