Wisely used, balance transfer credit card deals can help you to clear your debts.

If you read independent advice about credit cards, you’ll soon learn that most money experts believe that you can use 0% balance transfer deals to help sort out your existing debt. The one thing they all agree on, however, is that you have to be disciplined and actively manage your credit cards in order to do it.

If you think you can just move all your debts to one card and everything will be fine, think again. Clearing debt is a serious project and, if you don’t approach it properly, you could actually end up increasing your debts rather than clearing them.

Save, don’t spend

The purpose of taking advantage of a balance transfer credit card deal is not to get a better interest rate for purchases; it’s to help sort out your current debts. Adding purchases onto a new card can make managing your money very confusing. If your goal is to reduce your debt, stop spending and start saving money by choosing the best balance transfer deals. Once you’ve moved your balance onto a new card, put it away somewhere so that you won’t be tempted to spend on it. You can then concentrate on making the payments you can afford so that you can reduce the debt.

Look for the best deals

A 0% interest rate is obviously the best thing to look for – but it’s almost useless if it doesn’t run for a reasonable period of time. If you have large credit card debts, you’re not going to be able to pay them all off within three months. That’s why you need to look for a long introductory period and low, or no balance transfer fees. The longer your 0% rate applies, the more chance you have to make a real dent on your debts.

Keep on top of payments

If you’re making a balance transfer in order to sort out your debts, make sure you’re actually going to pay them off. Set up a direct debit for the highest amount you can afford so that you know that you’re making a real dent in your balance each month. You can budget for each payment and you don’t have to worry about forgetting to pay.

Don’t let the offer run out

If you know that the 0% offer is going to run out before you can pay off the whole of your balance, transfer again to another card. Make sure you do this before the end of the period, though, because as soon as the offer period ends, you will be charged a much higher interest rate on your balance. Keep an eye on exactly when you need to move and select a new card to apply for several weeks beforehand. This will give you enough time to make a balance transfer to a new 0% deal and continue to clear your debt.

You can compare 0% deals on our website and then go straight to the credit card provider’s website to make a balance transfer application.

< Prev		Next >