Taking Advantage of 0% Balance Transfers

These days, there are truly some great credit card balance transfer offers out there, so much so that you could potentially carry a low interest or interest-free balance all the time. That's right, you may never need to use credit that you have to pay a large amount of interest on, as long as you are transferring your balances to lower interest cards. All you have to do is transfer the balance from a higher rate card over so that no interest is accrued for a 6, 9 or 12 month period, depending on the credit card's transfer plan. There are so many different cards out there that offer this service. Shop around--find one that's right for you.

Keep in mind that most balance transfers are going to charge you at least a 3% fee for the service. So the higher the amount you're transferring, the higher the fee. Definitely calculate this out before deciding on the amount you plan to transfer--you don't want to end up paying more in fees than you'll actually save in interest. Make sure to read the terms and conditions of the balance transfer plan, just as you would with any credit card. Make sure you know how much you're actually allowed to transfer, as well as when the low or no interest period ends.

Some people forget when the interest-free period expires and end up carrying a balance over into the period when the high interest rates are reinstated. This is how interest charges pile on again and your monthly expenditures increase, defeating the whole purpose of the credit card balance transfer. And the credit card companies don't necessarily want you to anticipate the interest rate increase--they might tell you in fine print or in a letter sent shortly before the period ends. Unless you're on top of it, you could end up dishing out a lot of interest like you were before. This is how they get you.

It's usually quite easy to go about applying for 0% balance transfers. You can typically do it via snail mail, online or even over the phone. You'll just fill out a form, providing the information for the card provider whose balance you wish to transfer, and then the creditor will inform you if you're approved, how much you can transfer and at what rate. With so many different cards offering so many different low APR and interest-free periods, you are in the driver seat. Why pay such high interest when you could be paying little to no interest at all with a credit card balance transfer?

Written by Kacy Suther. A credit card balance transfer with 0% balance transfer can help you relieve debt. Balance transfers available with no annual fee at SmartBalanceTransfers.com .