The Latest Transfer News!

Dodge interest and defeat your debts by transferring them to a 0% credit card. We line up the Best Buys for you.

When I found myself deep in debt in the late Nineties, I was unable to use a powerful tool to help me turn my back on my credit cards.That's because the first 0% on balance transfers credit card was launched by online bank Egg on Christmas Day, 2000, by which point my finances were on the mend. Until this point, I'd taken full advantage of one-off low-rate deals on balance transfers, say, 3.9% APR for five months, but the 0% Egg Card totally blew me away. Naturally, I applied for one straight away, transferred my remaining balances, and I've been an Egg customer ever since.So, the simple message is: you can save a fortune by transferring your existing credit- and store-card debts to a 0% credit card, because you can avoid paying interest for up to a year. Indeed, a few cards allow you to transfer overdrafts, loans and other unsecured debts to their 0% deals. Wow!However, you need to tread carefully, because these deals are loss leaders for card issuers, so these firms need to claw back money from you somehow. As I explained in Conquering The Card Tarts, one simple way for lenders to make money from balance transfers is to charge processing fees. Until August 2004, no card issuer charged balance-transfer fees, now nearly half charge a fee, typically 2% of the value of each transfer.Of course, the whole idea of switching your debts to a 0% card is to save money each month -- money that can be used to pay off your balance faster, and leave you debt-free faster. Hence, if you can avoid paying a fee, it's worthwhile doing so. Alas, if you want a 0% deal which lasts for more than the standard six months, then it's almost impossible to avoid paying a transfer fee, as the following table shows (data taken from the Moneyfacts database)Best Buy balance transfers with fees (standard cards only, not Gold or Platinum cards)Card Length of0% deal(months) Transfer feeTypical ratefor purchases(% APR)Halifax One Visa 122% (£2 to £50)15.9Marbles92% (£5 to £50)14.9Abbey Balance Transfer92% (£2.75 to £50)15.9SonyCard 92% (£3 to £50)15.9Virgin Credit Card BT Option92% (£3 to £50)15.9Alliance & Leicester Online9 2% (£2 to £50)16.9If you prefer a no-fee balance-transfer deal, then you can choose from dozens of six-month offers. However, if you want a long-term deal, then try:the Barclaycard Platinum card, which offers 0% for ten months (you don't pay a fee if you open one at a Barclays branch); orthe Lloyds TSB Rewards Amex credit card, which offers 0% for nine months (no fee for transfers made in the first six weeks after your account is opened).Finally, the market trends are very clear: long-term no-fee balance transfers are dying out; for example, HSBC slashed its table-topping deal from nine months to six months last month. So, if you want to enjoy an extended 0% deal, be prepared to pay a transfer fee, or become a rate tart by surfing your debt to a new 0% credit card every six months!More: Check out our deck of delightful credit cards | Your Ultimate Guide To Credit Cards