Credit cards are useful tools for spending, short-term borrowing and accruing financial rewards. However, when used incorrectly they can begin to accrue monthly interest payments which can quickly snowball, leaving consumers in a pile of debt.

Despite being a form of unsecured credit – meaning that the debt is not tied to a physical asset such as a home – debts accrued on plastic are still a potentially huge financial burden.

If left for a significant amount of time they can also be dangerous to consumers – since there is currently less protection under law for credit and debit cards than for traditional bank loans such as mortgages.

For these reasons, it is vital to transfer high-interest card balances to other cards with a low or 0% interest rate on balance transfers before they become problematic.

With this precaution, the credit card debt can be paid off over time without the interest payments surpassing the original balance of the card borrowing.

Broadly, there are two types of balance transfer credit cards: 0% balance transfers and life of balance transfers.

To transfer a high-interest card balance it is first important to compare the different financial deals available.

In general, 0% interest on transfers cards will be suitable for consumers with smaller credit card debts since the 0% rate tends to restricted to a number of months.

When undertaking a comparison of balance transfer cards the length of the 0% rate is obviously the major factor.

In almost all cases, the longer the 0% rate on the transferred balance lasts for, the better. 0% rates start at 3 months but can be a lot longer.

For example, one of the longest 0% interest rate on transfer deals currently is with the Virgin card which is offering a rate of 0% interest for sixteen months.

When the 0% transfer rate runs out the borrower or card holder’s balance will return – once again – to a higher interest rate so it’s vital that the high-interest balance is paid within the 0% period.

If it will take longer than the length of the 0% rate to pay back the debt on plastic, on the other hand, then a life of balance transfer card would be more suitable.

The interest rates on these credit cards are usually under 10% APR.

Once a comparison has been performed, however, transferring the high-interest credit card balance is a fairly simple process.

In the majority of cases it’s possible to transfer the balance when the credit card application is made.

In most other cases, the lender that provides the card can be contacted by post or phone and instructed to transfer the balance within the first 60 days of the consumer’s application being accepted.

It usually takes three to four working days for the balance to be transferred from the high-interest vehicle to the low or no-interest one so that the consumer can start paying off the debt.

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