Balance transfer cards can be used to shift existing debt across onto one
credit card and they generally carry a low interest rates either for an introductory period, or a low rate that stays low.
As well as transferring debt from other credit cards, you can also use balance transfer cards to hold overdrafts and most other forms of debt. This is great if you find a card that has a long interest free period on balance transfers, as you can stop your debt from increasing further through interest, making a repayment plan and clearing your debt within the 0% period.
One thing you must remember is that nowadays most credit cards charge a fee for transferring a balance – around 3% of the amount transferred, so you need to weigh up whether you would be better off using balance transfer cards, or another method to clear your debt.
