Of course, eliminating credit card debt is easy to talk about, without a plan it can be just talk with no action behind it. One plan that can work for virtually anyone is a balance transfer. Unlike other options, like getting a second job or taking out a personal loan, the balance transfer is available to most everyone who has decent credit and a lot of determination. A balance transfer is when you move the debt from your old credit card or cards to a new credit card in order to get a lower interest rate. In some cases, like that of one of the most successful balance transfer credit cards the Virgin credit card, you can even get a zero interest deal. That means that you can go from paying upwards of 20% in interest fees to paying nothing. The reduction in interest fees means that you all of your payments go to the actual debt, making it a lot easier to pay it down quickly.

Tricks To Succeeding With A Balance Transfer

As you might expect there are some tricks of the trade to making the most of a balance transfer deal. The first is to get a good handle on exactly how much money you owe on credit cards and how much you are spending on interest. Remember to take into account not just the balance of your cards but also the interest fees and any other costs associated with owning each credit card including annual and other account maintenance fees. Once you know those costs you can compare them to what it will cost to do the balance transfer. You might have to pay an application fee or an annual fee for your new card. There may also be a balance transfer fee that you will have to consider when you compare costs. Not all balance transfer deals are interest free so you might also have to add in potential interest costs. Typically the interest rate directly relates to the length of the term with lower rates lasting for a shorter period of time. It is very important that you get a card that gives you enough time to completely pay off your debt before the low rate expires even if it means spending a little bit on interest. In the vast majority of cases, the balance transfer will save money in the long term.

There are other things to watch out for when you do a balance transfer too. For starters, you should not use your card for anything else until after the transfer is paid off. If it is used for purchases or cash advances you will likely wind up in an allocation of payments trap that sends all of your payments to the lowest interest debt first. This means your balance transfer will get paid off, but those higher interest purchases and cash advances will gain interest until the balance transfer is paid in full. This could mean months of interest fees, quickly landing you in the same spot you were in before the transfer. You will also want to pay it off while you still have the low interest rate. Once it expires you will again be stuck with a traditional interest rate, basically putting your debt back to square one.

If you have are really dedicated to getting out of credit card debt a balance transfer is one of the best ways to do it. Using a balance transfer carefully can save you loads of money whilst still eliminating credit card debt for good.

This article was written by Timothy Ng who is a regular personal finance writer and part of the team at Credit Card Finder, a 100% free Australian credit card comparison and application service. Visit the Credit Card Finder website for more information on the or subscribe to their RSS feed for more practical articles.

Related posts:

1. Tips for Making a Credit Card Balance Transfer
2. Different Types of Balance Transfer Credit Cards
3. 7 Reasons to Pay Off Credit Card Debt