The 'Do Nothing' Option

We strongly advise you not to fall into this trap, as it will certainly be the most expensive option available to you. As an example, consider a credit card that offers an introductory balance transfer of zero percent, followed by a standard APR of 15%. An individual that transfers a balance of £2000 would not pay interest for the offer period (unless they were to make purchases on the credit card, for cards that do not provide a purchase APR offer). However, this would then accrue interest at £300 per year (ignoring minimum payments) on the standard credit card APR.

Remember that standard interest rates for credit cards offering 0% transfer deals are generally much higher than the market leaders. In some cases, the standard APR can be higher than 18.9% at the end of the balance transfer period. This may even be higher than your old card. Some cards do, however, offer a relatively low rate and a balance transfer offer, such as the fixed low rate Capital One Platinum credit card and the Egg Card which allows annual balance transfers and lets you transfer balances from personal loans and overdrafts, as well as credit cards.

We strongly recommend, if you have not attempted to address the transferrred debt, that you consider transferring the balance to a fixed low interest credit card such as the market-leading Capital One Platinum. Another option would be to enjoy the balance transfer period then switch to another 0% balance transfer credit card (although this could have an adverse impact on your credit score) or consider consolidating your credit card debt with a personal loan.