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If you're being charged interest on existing credit or store card debt, you'll be able to move that debt onto another card that offers an interest-free or low-interest period on the money transferred.
A balance transfer makes it easier for you to repay your credit card debit in flexible equated monthly installments.
Used in a smart way, a credit card balance transfer can be a faster and cheaper way to pay off your debt.
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Regardless of what credit card you use, it's really important to check the terms and conditions before applying for a balance transfer. Make sure you're aware of:
Subject to the credit limit on the card you're transferring your balance to, you may be required to transfer a minimum amount. You can transfer your debt over from more than one card, but they must be current and the payments up to date.
When you transfer your balance over to a new card, you're only required to make a minimum monthly repayment. However, you'll be able to clear your debt faster if you repay more each month.
The easiest way to make sure you keep up with repayments is to set up a recurring auto debit.
You can also chip away at the debt by making multiple repayments throughout the month. This means that if you have some extra cash, you can use it to pay off the debt before you're tempted to spend the money elsewhere.
Explore more: What is loan repayment?
The goal of a credit card balance transfer is to enable you to repay your debt while saving money on interest. The less you use the card, the less money you owe, and the faster you can pay back that debt.
The low-interest period for the balance transfer feature is limited. When it ends, you'll be charged a new, higher interest rate. Make a note of the date when this will happen and aim to pay off your balance before then.
If you do still have money left to repay at the end of the low-interest period, review your options and consider moving your debt.
You may want to look at a credit card balance transfer at that time with another lender, which could offer you a further low-interest period.
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