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Find the best credit card balance transfer deals

There are two types of credit card user - those who pay off their balance in full each month and those who don't. In recent years the number of people in the latter group has risen dramatically.

If you carry a debt on your credit card over from one month to the next, you should take advantage of the introductory 0% credit card balance transfer rates available or switch to a card offering a low long term or life of balance transfer rate. This could cut your interest costs significantly

Use the compare tool to see which credit cards offer the longest 0% period for balance transfers, the best life of balance deals and lowest long term balance transfer rates, including some no fee options.

When you transfer a balance, your new provider pays off the debts on your current credit or store cards for you. You then owe the money to them but at a much lower interest rate. You might want to opt for a provider offering 0% interest on balance transfers for a period of six months or more. Anyone who has debts on a credit card, and a reasonable credit history, should be able to obtain 0% interest.

If you feel you can pay your debt off within 12 months, go for a card offering the longest 0% period for balance transfers. If you're unlikely to pay your debt off within a year, you'll need to switch providers every 6 months or so. To do this you'll need to be disciplined and begin searching for a new deal around 6 weeks before your present deal expires. If you're not keen to do this, you should opt for a card which offers a low life of balance rate such as the Morgan Stanley Platinum card.

Minimising the interest charges should be the most important consideration for those people who keep a balance on their credit card. However a survey by Intelligent Finance (IF) revealed that as many as 5.5 million card users in the UK had never taken up a balance transfer offer. They found the average outstanding balance was £9,303 which was subject to an average interest rate of 15.4%. It is estimated these people could save a collective £585 million or £105 each in interest this year if they switched to a better deal.

Fees

When deciding on which card is best to transfer your debt onto, pay careful attention to the balance transfer fee. This tends to be around a charge of 2% of the balance transferred and is typically capped to a maximum charge of £50, but watch out as an increasing number of providers do not cap the fee.

Avoid spending

One thing you should try and avoid is spending on a card you transfer a balance to, instead try and reduce your debt. It often works out cheaper to have a different card for spending, unless the provider offers 0% rates for purchases as well as transfers. The Natwest & RBS cards currently offer 0% for both.