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

Research: How balance transfer cards can pull you out of the rut that you are in -

Having a balance transfer credit card is one of the best things to assist you when burdened with a huge debt you cannot pay. It is in fact no charity what the credit card companies are doing, but it is one of the best marketing tools ever invented in the industry. They offer zero percent credit cards to entice customers to pull out their outstanding balances from costly high interest rate credit cards onto their zero interest rate credit cards. Once the introductory period is over, the balance is charged the regular interest rate by the new credit card company.

You can make use of this credit card if you are diligent enough to take advantage of the zero percent interest rate, and then pay the remaining outstanding balance at the end of the grace period. Hence, when used sensibly, a balance transfer credit card can help you say goodbye to all your problems, and you can pay away your high interest rate credit card bills. Many people have utilized these types of credit cards in order to get out of the rut that they are in. You can do the same; all it requires is careful planning.

The first thing you need to do once you've determined you want to proceed with a balance transfer, is to select a good credit card. Try to find the longest interest free introductory period. A lot of banks will provide anywhere between six months to a year as an introductory period. Some banks even offer two years as an introductory period. The longer the period, the better it will be for you, as you will have more time to make the repayment.

Also look for credit cards that offer a low charge on the balance transfer itself. If the transfer charge is much more than what you can save with the prevailing interest rate, you should not consider applying for that particular credit card.

You will also need to find out what the interest rate will be at the end of the introductory period. If you are unable to make the repayment within the introductory period, you will end up paying that interest rate on the outstanding balance. Applying for balance transfers all the time is also not advisable, as this negatively affects your credit score. Each balance transfer application is in essence an application for a new credit card. If you are rejected, your score will suffer. Even if you are accepted, it will suffer as your number of credit lines will increase.

Using a balance transfer credit card diligently is all about utilizing the time wisely to save some money. A balance transfer credit card can buy you time, but it will not help you change your lifestyle. This will need dedication from your side. Cutting down on expenses during that interim period is the only way to save enough cash to make a repayment on the outstanding balance.