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Balance transfers: when they help and when they hurt

A 0% balance transfer can buy you breathing room, but only if you can clear the balance before the deal ends.

Credit Cards3 min readReviewed July 2026

A balance transfer moves debt from one card to another, usually at a low or 0% rate for a set period. The idea is simple: pay less interest, clear the balance faster.

There is almost always a transfer fee (typically 2–4%), and the promotional rate ends on a fixed date. Anything left after that date reverts to the standard purchase rate, which is often 25% APR or more.

Balance transfers only work if you stop spending on the old card, make every payment on time, and have a realistic plan to clear the balance in the promo window. If you can't, a debt solution may be a safer route.

General information, not personalised adviceThis article is written to inform. It isn't personalised debt or legal advice, and Debt Compass is not authorised by the Financial Conduct Authority. A team member can talk you through the options and point you to a free debt help service or authorised insolvency practitioner before you decide on anything.