Should I Apply for a Balance Transfer?

It is important to remember that by transferring your balance to a new card, the debt has not gone away. It will just mean you are not paying interest, or at least as much interest, on your new card.

You should be wary of balance transfers if your overall debt is increasing. A balance transfer must not be seen as a green light to spend more money. The money that you are saving should be used to decrease your debt.

Possible advantages of a balance transfer are that there may be a longer length on the offer period. And the great zero or low interest rate charged on the balance.

The disadvantages of balance transfers are that there may be hidden charges involved in the transfers. Also most banks will charge a handling fee on the transfer.

What should I look for in a balance transfer ?

When considering a balance transfer, you should consider:

Advantages

• Length of offer period.
• Offer Interest Rate.
• The zero or low interest rate charged on the balance.
• Possible transfers from loans and overdrafts.
• On some cards you can transfer from existing loans and overdrafts and still get the offer.

Disadvantages

• Cut-off period for the balance transfer offer.
• Hidden Charges on transfers.
• Some banks will charge a handling fee on the balance transfer.
  Balance Transfer Cards Explained
• Balance transfer cards are those which offer an incentive to people to bring their existing credit card debt to the new issuer. Credit Card issuers are in the business of lending money so they love to take on your current debt. These cards offer a low introductory rate that expires and usually goes up after the initial period.