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

Research: How to use a zero percent balance transfer to get out of debt? -

There was a time when everything was bought and sold with cash. We are not talking about gold but cash, Plain hard cash. Now, it is all about plastic. Gone are the days, when one would pull out cash and start counting them in public view. A plastic card could mean a debit card, credit card or a prepaid card.

When you use a debit card, the money is taken directly from your bank account. Using this, you will not have to pay any interest because it is your money that you are spending. If it is a credit card, you will be spending borrowed money, In other words the banks money, if not pay back within a certain time period; you will have to pay interest on it. Over time it can become really hard to perceive just how much interest one is paying to the bank.

If you have already spent more than what you could afford, and are not able to pay back within the grace period, you may consider applying for a balance transfer. A balance transfer is transferring all the outstanding balance from your present credit card to a new credit card which offers a interest free payment for a certain introductory period. Being able to perform this transfer, you will have had to pay some transfer fees. This is the only way to avoid the vicious cycle that you have played yourself into. You might end up finding that you are just paying off the minimum due every month and your principle amount remains the same.

The best way to get a good balance transfer credit card or a zero percent interest rate credit card is to call your bank. Your bank will be able to provide you with a card that you can afford. If your bank cannot give you favorable terms and conditions, you can start analyzing the competition. We shall now see how the balance transfer works.

If you have spent money on card A, you can open a new credit account with card B. card B would have to pay off the debt on card A. Card A is satisfied and will no longer bother you. You can either close it or continue using it; I would strongly advice the former. You will now have to tackle the balance on card B. this will have to be done over the grace period which will range between six months to two years. Do not try and take out card C to pay off the debt on card B, this will again result in another never ending cycle. Remember, each time you make a transfer you will be charged a fee. You need to figure out whether paying the fee is better than having to pay the interest rate on the outstanding balance on the credit card.