But what happens if you don’t pay the balance off in time? They can be tricky to find but there are 12 month balance transfer credit cards on the market and a careful comparison of their terms and conditions may turn up some very interesting information for you.

The basic idea behind any balance transfer card offer is simple. If you have one or more existing credit cards and you are keeping a balance on those cards from month to month, the lender is charging you interest on the unpaid balance. By transferring that balance, or balances, to a new card with a low or zero percent interest you can greatly reduce the amount you pay toward interest and increasing the amount you pay toward principle. This kind of transfer could help you pay off your credit cards.

So What’s The Catch

A close inspection and 12 month balance transfer credit card comparison will show that the basics of all balance transfer cards are the same. This leaves very little room for them to compete for your business. So they attract your attention with a crazy low introductory interest rate… like 0%. Sound good, right? Well maybe. Many lenders limit the amount of time you have to pay off the transferred amount before regular interest kicks in. Hence the “introductory” interest rate.

Typically you can get a longer term in which to repay the transferred amount however, most banks will respond by increasing your interest rate for new charges. This is really not such a big problem if you plan on paying off your balances each month, of course, if you were doing that, we wouldn’t be talking about balance transfers, so…

The other key sticking point to be aware of is the order of application for your payments. It would be easy to assume that is you transferred $1,000 onto the new card at zero interest, that new charges would be under the same “no interest” umbrella. Well, you would assume incorrectly. They are virtually always charged interest at the regular rate.

Here is where it gets really messy. Lets say you transferred $10,000. Its going to be a while before you pay that off, even if you did your homework during the 12 month balance transfer card comparison. As a result, if you add new charges and those charges are accruing interest, you can see how those new charges become very expensive very quickly. If you think it will take you more than a month or two to pay off the transfer amount if full, avoid new spending on the card at all cost!

So don’t be intimidated by the terms and conditions of a balance transfer card, they have done great things for the financial health of thousands of your fellow Australians and they can help you too. Now that you know the finer points of the plans and some of the potential traps, walk into your bank or fill out that application online with confidence and get the credit you need at a great low rate.

Should You Apply for the Best 12 Month Balance Transfer Credit Card?

The object of the best 12 month balance transfer credit card offers is to give customers an opportunity to reduce the amount they pay in interest. If you look at the amount of interest you pay on your existing credit card balances, you could find that the interest rate is quite high.

You transfer the outstanding balance over to your new credit card and you’ll enjoy far lower rates than you’re paying right now.

By shopping around to find the best 12 month balance transfer credit card you can find, you’ll be paying far less interest. This can reduce your minimum monthly repayment and reduce your interest bill each month.

If you’re diligent about putting your interest savings back towards reducing your balance, you’ll find it’s much easier to pay down your debt than you thought.

What to Look for In the Best 12 Month Balance Transfer Credit Card

The best 12 month balance transfer credit card should offer a low introductory rate for the first 12 months from when you open your account. However, while looking for a good rate can be important, it’s equally vital to be sure you understand what the standard purchase rate will revert to once the introductory period expires.

It is possible to find offers that will revert to a low standard purchase rate, so be sure to do your homework before you apply.

You should also check the annual fee being charged. Obviously, you should look for a credit card with a low annual fee. This will help keep your costs down.

When you think you’ve found the best offer to suit your own debt needs, go ahead and apply. When your new account is opened and ready to go, you can then transfer your old, high-interest balances over to the new card.

With greatly reduced interest rates, you’ll be surprised at how quickly you can regain control of your finances again and begin to reduce your credit card debt once and for all.