Are balance transfers worth it?
A 0% balance transfer moves expensive credit card debt onto a card charging no interest for an introductory period — for a one-off fee. Done right, it can save hundreds in interest. Done wrong, you pay a fee and still get charged. Here's how to tell which.
0% interest for a fee
A balance transfer card charges 0% interest on the transferred balance for a set period (often 12–30 months), in exchange for a one-off transfer fee, typically 1–3% of the balance. If you clear the debt within the 0% window, the fee is all you pay — far less than ongoing interest at 20–30%.
Fee vs interest saved
The deal is worth it when the interest you'd otherwise pay exceeds the transfer fee. On a £5,000 balance at 24.9%, staying put could cost hundreds in interest, while a 2.9% transfer fee is just £145. As long as you keep up payments, the 0% card usually wins comfortably.
Clear it before the 0% ends
What to watch out for
- You must still make at least the minimum monthly payment — miss one and you can lose the 0% rate.
- New purchases usually aren't covered by the 0% and may be charged interest.
- You generally can't transfer between cards from the same bank.
- The 0% length you're offered depends on your credit profile.
£5,000 at 24.9%
Paying £250 a month on a £5,000 balance at 24.9% costs a significant amount of interest over the time it takes to clear. Transferring to a 24-month 0% card with a 2.9% fee (£145) and paying the same £250 clears it inside the 0% period — so you pay only the £145 fee and save the rest.
Common balance transfer mistakes
- Only paying the minimum. Minimum payments may not clear the balance before the 0% ends, leaving you facing high interest.
- Spending on the new card. Purchases usually aren't at 0% and complicate how payments are applied.
- Missing a payment. A single missed payment can cancel the 0% deal entirely.
- Ignoring the fee. On small balances or short payoff times, the fee can outweigh the interest saved.