01What is a Balance Transfer?
A balance transfer is when you move debt from one or more credit cards to a new card, typically one offering a promotional 0% interest rate for a set period (usually 6-36 months).
If you're currently paying 20%+ APR on your credit card debt, moving to 0% means every payment goes directly to reducing the principal instead of being eaten up by interest.
But balance transfers aren't free money. There are fees (typically 2-4% of the transferred amount), eligibility requirements, and ways they can backfire if you're not careful.
02Is a Balance Transfer Worth It? Check Your Numbers
Use this free balance transfer calculator to check your numbers. Plug in your card details and you'll see the transfer fee, how much interest you'd save, and what you need to pay each month to clear the balance before your 0% period runs out.
03When a Transfer Makes Sense (and When It Doesn't)
A balance transfer makes sense when you have credit card debt at 15% APR or higher and you can pay it off before the 0% period ends. The FCA estimates its persistent debt regulations could save UK consumers between £310 million and £1.3 billion a year in interest.
Example: £5,000 at 19.9% APR, paying £200/month. You'd pay £1,456 in interest over 30 months. Transfer to a 0% card with a 3% fee (£150) and you save £1,306. Quick formula: (balance x APR / 12) x months to payoff = total interest. Compare that to the transfer fee.
You need three things: a realistic plan to clear the debt during the 0% window, the discipline to stop using the old cards, and a credit score of roughly 670+ to qualify. If you're only making minimum payments or likely to rack up new debt, a transfer probably won't help.
Not sure you'll qualify? Check your odds with a soft-search eligibility checker before you apply, so a rejection doesn't leave a mark on your credit file. Here's where to check your balance transfer eligibility for free.
04Picking a Card
Go for the longest 0% period you can get. MoneySavingExpert lists UK deals from 6 to 36 months; longer deals have stricter approval. Some cards waive the fee on transfers within the first 60-90 days.
Watch the post-promo rate. Some jump to 25%+ APR when the 0% ends. And don't use the new card for purchases. Most balance transfer cards charge a separate, higher rate on spending.
05Mistakes That Undo Your Savings
Running the old cards back up. You cleared the balance, but if you spend on them again you now have double the debt. Cut them up or freeze them.
Only paying the minimum. The 0% period is your window to smash the balance. Pay everything you can afford, not the £25 minimum. Set up autopay for at least the minimum so a missed payment doesn't void the promo rate.
Transferring more than you can realistically clear. If you have £10,000 in debt and can only pay £200/month, don't put it all on an 18-month 0% card. You won't clear it in time. Transfer only what matches your repayment capacity. (Working with £10k? Our £10k payoff guide breaks down realistic timelines.)
If you have multiple debts, you don't have to transfer them all. Move only the highest-rate ones and leave lower-rate debts where they are. You save more interest and pay less in fees.
06Don't Forget Your 0% Deadline
You transfer in January. Life happens. Eighteen months later you've forgotten when the promo ends. The rate jumps to 24.9% overnight on whatever balance remains.
Use TrySnowball to track your 0% deadline and see exactly how much you need to pay each month to clear it before the promo expires. If you transferred £5,000 on an 18-month 0% card, that's £278/month. Not £25. Not "whatever you can manage."
If you can't afford the monthly amount needed to clear it in time, don't transfer. If you're struggling to afford even minimum payments, contact StepChange (0800 138 1111) first.