The content is accurate at the time of publication and is subject to change.

It is invariable that sometimes things just don’t go as planned especially when it comes to credit cards and your finances. Credit card debts are difficult to deal with and you must find a way to sort things out without adding to the already existing debt. When you find credit card payments getting increasingly difficult, you may want to apply for a 0% balance transfer deal. There are a lot of banks that will offer you competitive rates of interest and no fees on transferring to their account. As with anything else, you will of course need to plan it out better.

It is important of course to understand that a 0 on balance transfer offer does not mean you suddenly have more money to spend and use as you will. Every credit card offer is made to look larger than life and better than it is, to lure the customers to it. The customer does not realize many a time the importance of reading through every statement on the balance transfer deal before making a decision and ends up with heavy losses that they could have done without. This deal may offer an introductory interest rate which is lower than your existing one or no interest for a limited period.

It is important to understand carefully the terms and conditions of a balance transfer. How long is the new interest rate valid and also check if it applies to any new purchases made on the card? Most of the time, it will not be applicable to new purchases, so don’t make the mistake of spending first and then realizing later when the bills come in. Balance transfer deals are meant to fish you out of a difficult situation, so approach them with a note of caution to yourself.

Don’t spend more, save up and close the debt that is owed on your card. When you apply for the balance transfer card also check what interest rates will be applicable on the card once the period is over. You do not want to end up with an high interest rate again. Also once you have transferred your balance to the new card, you have to decide what you want to do with the other one. If the other account is a really old one, you should not close it as it will lead to problems with your credit score later. Plan things out carefully to avoid complications.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.