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Credit card debt can be costly—but what if you could press pause on the interest? 0% balance transfer cards promise just that. So here is a guide on how the deals work, what they can save, some of the traps to avoid, and whether moving your debt from one card to another is a clever strategy—or a risky habit.

In 2024, the average (mean) total unsecured debt amount held per client of the debt charity Step Change has increased by £1,018 (up 7%) compared to 2023, from £14,654 in 2023 to £15,672 in 2024.

Q: How Do They Work?

A: A balance transfer allows you to move your debt from your current credit card to another new card. You open a new balance transfer credit card, request the transfer , and your old debt is moved to the new card.

Once approved, balance transfers typically take one working day, but can take longer if you've requested it on a weekend, bank holiday, or after 7pm.

If you're juggling high-interest credit card balances, an interest-free balance transfer could save you thousands of pounds. These offers let you move your existing debt to a new credit card with a 0% introductory interest rate, often lasting up to 18 months - 36 months.

During this period, every penny you pay goes toward reducing your balance—not paying the lender any interest at all.

The result? You owe the same amount, but at 0% interest for a set period—giving you a window to clear the debt faster.

Used wisely, 0% transfers can save you hundreds or even thousands of pounds in interest. But while the deals are attractive, they’re not without pitfalls. Transfer fees, late payment penalties, and a sharp jump in interest once the promotional period ends are all risks to be aware of.

Q: How Much could the average household save with a deal like this?

A: Let’s say you have the average UK household credit card debt of around £2,000. If you didn’t make any repayments for 36 months and left the balance on a standard credit card charging 21.9% APR, the debt would grow to approximately £4,190 due to compound interest. That’s an extra £2,190 in interest alone. That has doubled your debt.

By contrast, shifting that debt to a 0% balance transfer card for 36 months would stop the interest clock. Even after a typical 3% transfer fee (£60), you’d still come out far ahead. This is why these deals are such powerful tools—but only if used properly.

Q: So there is 0% on the current debt but what do they charge on new spending?

A: Some cards will give you 0% on the debt transfer and 0% on spending. For instance the M&S Bank credit card offers 24mths 0% on spending and Up to 12mths 0% on transfers (3.49% fee). It then charges 24.9% rep APR after

So some cards offer both 0% on purchases and 0% on balance transfers, but the best deals often come from providers offering one or the other. Many also include perks like cashback or rewards, which are nice to have, but shouldn’t drive your decision.

Q: Are 0% deals better than a loan always?

A: For larger sums or if you prefer structured repayments, a personal loan may be a better fit. You borrow a fixed amount and repay it in regular instalments. While you won’t benefit from 0% rates, personal loans tend to have lower interest for larger borrowing amounts: around 10% for loans up to £5,000 and 6–8% for loans of £10,000 or more. So that is half the rate of a credit card after the 0% interest eriod has expired.

Q: How does applying for a credit card affect my credit score?

A: Applying for a credit card does leave a track on your credit score and applying for too many in a short period can lower your credit score. However if this is of concern, you can use an 'eligibility checker' which runs a dummy check on whether you are likely to be accepted or not. They say this should not effect your score. It is not full proof but may be worth looking into. You can find eligibility checkers at moneysavingexpert.com which looks really good but there are others which say they also provide similar services including comparethemarket.com , Moneysupermarket.com

Q: Are all the 0% deals the same or are there specific things to look out for?

A: Here are some of the things to check:

• Balance Transfer Period: This is the number of months you’ll pay 0% interest. Choose a period long enough to clear your debt.

• Transfer Fee: A percentage of the amount transferred, often 2–3%. Longer 0% periods usually mean higher fees.

• APR After 0% Ends: The interest rate charged after the promotional period. If you don’t clear your debt in time, this kicks in.

Remember: The advertised APR is representative, meaning only 51% of applicants have to get it—you could be offered a higher rate.

Q: What sort of deals are around?

A:

• HSBC: 33 months at 0% with a 3.19% fee (backup rate: 26 months at 0%)

• Tesco: 18 months at 0% with a low flat fee (~£10 per £1,000)

• MBNA: Up to 32 months at 0% with a 3% fee (backup rates vary from 14 to 31 months with higher fees)

Use eligibility checkers to see which deal you’re likely to get before applying.

Some Tips on Using 0% Transfers

1. Clear your balance before the 0% ends – or transfer again.

2. Don’t spend or withdraw cash on a balance transfer card. Withdrawing cash is different from spending cash, although I don't understand the logic of this. But either way - check the rules before withdrawing any cash as this may not be 0% interest free.

3. Don’t switch cards too often – Frequent changes can hurt your credit score.

4. Don’t make multiple applications in a short time – This can also damage your credit profile.

5. Don’t forget old accounts – Inactive cards can be targets for fraud.

Q: Can you just keep switching from one 0% deal to another?

A: You can try, although the guidance I have seen is not clear. This is called card surfing. Each application triggers a hard credit check, which can lower your score.

• Frequent transfers make you look like a risky borrower.

• Transfer fees (usually 3–5%) chip away at your savings.

• You might not always be approved for a new deal.

Q: Can You Keep Surfing from One 0% Deal to Another?

A: In theory, yes. This tactic, known as "credit card surfing," involves moving debt from one 0% deal to another to avoid interest indefinitely. But it’s not easy in practice.

Bottom line: 0% cards are a powerful tool if you use them strategically and repay on time. But they’re not a long-term fix. Use them to take control of your debt—not to avoid it indefinitely.

An Important Word:

Credit cards are generally very poor ways of borrowing money unless you pay it off in total at the end of the month, and therefore pay no interest or are only using the 0% interet free period.

If you find you can never clear your credit card bills, it may be much cheaper for you to gert a personal loan, as the interst rates tend to be lower. Of course it is much easier to write this than do it for some people who are in financial strain and just can't easily get a personal loan from a bank. If you are worried or stressed you can contact a FREE debt advice service such as the following which are recommended by the government debt webpages. The following are taken from those pages:

National Debtline

National Debtline offers phone and webchat services in England and Wales.

Telephone: 0808 808 4000 Monday to Friday, 9am to 8pm Saturday, 9:30am to 1pm Find out about call charges

Citizens Advice

Citizens Advice offers phone and webchat services. They also have advice centres in England, Wales and Scotland.

Telephone (England): 0800 144 8848 Telephone (Wales): 0800 702 2020 Telephone (Scotland): 0800 028 1456 Webchat serviceMonday to Friday, 8am to 7pmFind out about call charges

StepChange Debt Charity

StepChange Debt Charity offers phone and online services.

Telephone: 0800 138 1111Monday to Friday, 8am to 8pmSaturday, 8am to 4pmFind out about call charges

I would always avoid paying for debt advice services

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