Credit cards: best debt-busting 0% balance transfer deals
If you've run up debts on your credit cards and are looking to clear them in the cheapest way possible, you should consider a 0% balance transfer credit card.
Generally speaking, these are great products. You can move an existing credit card debt to a new card and then not pay any interest on that debt for a long period.
The problem is you will usually have to pay a balance transfer fee upfront. This is a percentage of the debt you're transferring to your new balance transfer card.
This varies from one provider to the next. Some charge nothing at all, while others charge up to 3.5% of the total debt transferred.
0% balance transfer cards with long interest-free periods
Here are the cards with the longest 0% balance transfer offers to see how they stack up. This table is ranked purely on length of offer.
Credit card | 0% period on balance transfers | Balance transfer fee | Cost of transferring £2,000 balance | Representative APR after 0% period ends |
43 months | N/A | £0 | 21.7% | |
41 months | 3% | £60 | 20.9% | |
41 months | 3.25% | £65 | 18.95 | |
41 months | 3.25% | £65 | 18.95 | |
Sainsbury's Bank Nectar 40-Month Balance Transfer Credit Card** | 40 months | 1.69% | £33.80 | 18.9% |
40 months | 1.7% | £34 | 20.9% | |
Tesco Bank Clubcard Credit Card for Balance Transfers and Money Transfers | 40 months | 2.69% | £53.80 | 18.9% |
*Card has a £3 monthly charge
**Only available to Nectar cardholders
0% cards with low balance transfer fees
The Santander All in One Credit Card offers 43 months 0% on balance transfers with no fee, but the card attracts a £3 monthly fee, so you will have to pay £36 a year to take advantage of the deal.
If you're willing to go for a card with a shorter interest-free period, you can pay a much lower fee or even no fee at all, as the table below shows.
Here are some of the best deals for various 0% periods between 29 and 38 months.
Credit card | 0% period on balance transfers | Balance transfer fee | Cost of transferring £2,000 balance | Representative APR after 0% period ends |
29 months | None* | £0 | 18.9% | |
30 months | 0.55% | £11 | 19.9% | |
33 months | 0.58% | £11.60 | 18.95% | |
37 months | 1.4% | £28 | 18.9%rbishe | |
38 months | 1.5% | £30 | 20.9% |
*You must transfer your balance within first 90 days of account opening to get this offer
Just make sure you weigh up how long you'll need to pay off your debts. It's better to have longer at 0% interest and pay a slightly larger fee than run out of time and end up paying interest if you forget to switch again.
Average credit rating
Sadly, some people won't be able to get any of the cards we've highlighted in this article. That's because the credit card companies are only willing to give these cards to people with good credit ratings.
Other options
If you want even longer to get back into the black, you could apply for a personal loan and use the money you've borrowed to pay off your credit card debt. Right now, the top personal loans are charging as little as 2.8% in interest.
0% is best
But if you can get one of the top 0% cards, go for one of them. Just make sure you pay off your minimum monthly repayment promptly every time. Otherwise your credit card provider will use your late payment as an excuse to withdraw your 0% deal.