If you are struggling with debt, you may be able to reduce your debt burden with a simple money transfer trick.
A 0% transfer allows you to get a new card to pay off debt on an old credit card. The advantage here is that the old card will have an interest rate added to the repayment, while the new card will not accrue interest for a certain period of time.
This means that any debt on the card can be paid off more easily without having to worry about getting into more debt. However, it’s important to remember that most banks only offer 0% interest for a limited time, so you should try to pay off the debt before then, otherwise you’ll be back to square one.
In addition, interest rates could become extremely high after the 0% period, potentially putting you in a worse situation than before. To avoid this, you should plan your conversion period accordingly and carefully.
Money Saving Expert’s guidelines stress that bank customers are not permitted to transfer funds between banks. Individuals must also check whether they are eligible for a 0% interest card as a credit check will be carried out during the application process.
If you already have a specific card in mind that you want to switch to, you can check its creditworthiness using an online tool (for example, one of the tools available on MSE).
How to find the best balance transfer for you
There is a wide range of 0% cards on the market, all with different terms and transfer fees. It is highly recommended that you shop around before making a decision. An easy way to do this is to use a comparison site such as Uswitch or Compare The Market.
For those with poor credit, credit cards can still be an option, but be aware that interest rates after the grace period can be significantly higher compared to other accounts available to those with better credit.
