Special balance transfer offers are a great way of getting credit card debt under control.  By transferring your balance to another credit card provider you can either benefit from a period of no interest or low interest.  With some good budgeting you can try to pay off that card before the no interest rate period ends.

The main thing to look out for when transferring a balance is the interest rate that the card switches to once the interest free period ends.  If you do not think you will pay off the card during the interest free period then look to switch again or take a card that has a low interest rate for the life of the balance.

  

Credit Card	Card Details	Interest Rate	Annual Fee	Interest Free Days	Cash Advanced Rate	Balance Transfer Rate	Â
	Rather than pay for the features you don't need, HSBC's Credit Card gives you the freedom to buy what you want, when you want. HSBC also offer a $50 cashback on this card.	16.99% p.a.	 0	 55	 20.75%	 0% p.a. for first 6 months	  Â
	Be rewarded with Cashback to your ANZ Balance Visa or redeem Rewards Points for Shopping Vouchers and Gift Cards for retailers such as Myer and David Jones and more.	14.24% p.a	 $79	 55	 21.49% p.a.	 0% for the first 6 months.	  Â
	Transfer your non-ANZ credit, charge or store card balances to an ANZ Low Rate MasterCard and enjoy a 0% p.a. balance transfer rate for the first six months	13.24% p.a	 $58	 55	 21.49% p.a	 0% for the first 6 months.	  Â
	Great card offering 0% on balance transfers and purchases for the first 6 months!	11.49% p.a.	 $49 (save $50 until 31st March)	 55	 20.99% p.a.	 0.0% p.a. for 6 months on Balance Transfers	  Â
	Good low rate card from Citibank.	11.99% for first 12 months	 $65	 55	 21.24% p.a.	 0% p.a. for 6 months on Balance Transfers	  Â

The average credit consumer will receive offers for low interest balance transfers from credit card companies frequently. These offers used correctly, can give the wise credit consumer the opportunity to save money on interest and to pay off their balance at a lower cost. On the other hand used improperly they can actually cost the credit consumer money.

Can the Credit Card Companies Make Money From Balance Transfers?

The credit card company is a business and as such, they need to make a profit. It seems difficult if they are offering to transfer your balance from another company to a low or no interest rate credit card. However, balance transfers will have a fee attached for the transfer. This may not be significant in the case of a large balance but it can be very significant in the case of a small balance you are transferring and actually cost you money. They also are gambling that you will not pay off your transfer; this will give them a new customer. In some cases, the new credit card company will be a great choice and in others, it may not work.

What to Look For When Considering a Balance Transfer

• Consider the balance transfer fee opposed to the amount of money you are transferring. If the amount of your balance is small, the fee may consume your savings in interest.

• Consider how long the low introductory rate lasts and what the regular credit card interest rate is going to be. If you do not pay off the balance, transfer before the introductory period is finished you may find the rate unattractive if you have not checked first.

• Consider also, what the terms are for paying off the balance transfer. Some credit card companies apply payments to the transferred balance only after the existing regular balance is paid. What that means is that though you are making payments to the credit card company, you want to be sure the payments are applied to the transfer. Terms for this vary with the company.

• A balance transfer can free up extra money each month by eliminating the interest charges, but it works best if you pay off the credit card amounts as quickly as possible. The interest rates will be higher at the end of the introductory period on the amount transferred in and good financial planning can help make a balance transfer work for you and help eliminate your debt.

• Credit cards are necessary in today’s world. However, too many can affect a credit consumer’s credit rating negatively. Many consumers choose to transfer balances only when they the terms are beneficial to them in the short and long term and the company is one they may even want to stay with.

Choosing to make a balance transfer can be very wise financial planning, but only if the consumer knows what the terms are for the introductory period, and what they will be after that low interest period as well as any charges that apply to the balance transfer process.