Balance transfers can help you to lower the cost of your credit card borrowings and consolidate multiple debts. They could potentially help you lower your outgoings as well.
Make sure you repay your debt before the introductory interest rate period runs out. You can’t assume that you’ll qualify for another balance transfer deal.
Transferring your balance means moving all or part of a debt from one credit card to another.
People often use them to take advantage of lower interest rates.
Switching your debt to a card with a lower interest rate lets you:
Speak to your bank or credit card company, or check their website, to find out how to transfer your balance.
You might be able to do this online.
Don’t make purchases with a credit card that you have made a balance transfer to, as you’ll only add to your debt.
Credit card companies usually charge a fee for balance transfers.
This will often depend on the size of the transfer and possibly the length of the introductory period.
Be sure to check the fee and take this into account when calculating potential savings.
This article is provided by the Money Advice Service.