Should you consider a credit card balance transfer?

Rising debts, high rates and fees are enough reasons for anyone to jump ship on their old credit card. Although jumping ship isn't always going to guarantee you success, you are after all just transferring your debt. However, if you are smart you will realise what you are really getting is a valuable interest free period in which to pay off your remaining debts.

Companies usually offer the popular 0% on balance transfers, meaning that all the debt you transfer to your new card could be charged on a zero rate for up to 6 months. But before you fill out your application, take some time to read all the footnotes.

A transaction fee on balance transfers could mean that you'll pay hundreds for switching. If you're going for the zero rate, it's best to find one without fees.

Double check with the company that you're eligible for the advertised rate and how long the honeymoon is before you're hit with the normal rate. A lot of interest rates also skyrocket if you miss a payment.

Lastly, it could take weeks for the transfer to go through, so avoid penalty fees on your old card by making the minimum payments while you wait.

The table below lists some of the best balance transfer MasterCards, sorted by lowest interest rate.

Thinking of transfering over your credit card balance? Try the RateCity credit card comparsion tool to find some of the best credit cards in the Australian market.

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