Using a credit card to repay debt

If you`ve only ever used a credit card for spending money, you may be surprised to learn that the right type of credit card could actually make your debts easier to repay.

The type of credit card in question is one that offers 0% balance transfers. For a time-limited period, these deals don`t charge any interest on balances transferred over from other cards - meaning you can effectively make your debts interest-free. Even if you`re paying a fee to move that money to the card, this could still save you a lot of money.

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Product	Transfer rate & period	New Purchases rate & period	Representative APR
Barclaycard Platinum Credit Card with Extended Balance Transfer	0% 22 mths 2.9% Fee	0% 3 mths	17.9% (variable)
	Representative example: With this credit card the representative APR is 17.9% (variable) based on an interest rate of 17.9% (variable), transfer fees of 2.9% and a credit limit of £1200.
NatWest Platinum	0% 22 mths 3.2% Fee	0% 6 mths	17.9% (variable)
	Representative example: With this credit card the representative APR is 17.9% (variable) based on an interest rate of 17.95% (variable), transfer fees of 3.2% and a credit limit of £1200.
Royal Bank of Scotland Platinum	0% 22 mths 3.2% Fee	0% 6 mths	17.9% (variable)
	Representative example: With this credit card the representative APR is 17.9% (variable) based on an interest rate of 17.95% (variable), transfer fees of 3.2% and a credit limit of £1200.
Halifax Balance Transfer Credit Card	0% 22 mths 3.5% Fee	0% 3 mths	17.9% (variable)
	Representative example: With this credit card the representative APR is 17.9% (variable) based on an interest rate of 17.95% (variable), transfer fees of 3.5% and a credit limit of £1200.
Barclaycard Platinum Credit Card with Balance Transfer	0% 21 mths 2.6% Fee	0% 3 mths	17.9% (variable)
	Representative example: With this credit card the representative APR is 17.9% (variable) based on an interest rate of 17.9% (variable), transfer fees of 2.6% and a credit limit of £1200.
Virgin Credit Card	0% 20 mths 2.99% Fee	0% 3 mths	16.8% (variable)
	Representative example: With this credit card the representative APR is 16.8% (variable) based on an interest rate of 16.8% (variable), transfer fees of 2.99% and a credit limit of £1200.
MBNA Credit Card	0% 20 mths 2.99% Fee	0% 3 mths	16.9% (variable)
	Representative example: With this credit card the representative APR is 16.9% (variable) based on an interest rate of 16.9% (variable), transfer fees of 2.99% and a credit limit of £1200.
Halifax 20 Month Balance Transfer Credit Card	0% 20 mths 3% Fee	0% 3 mths	16.9% (variable)
	Representative example: With this credit card the representative APR is 16.9% (variable) based on an interest rate of 16.94% (variable), transfer fees of 3% and a credit limit of £1200.
Nationwide Building Society Credit Card	0% 20 mths 3.1% Fee	0% 3 mths	15.9% (variable)
	Representative example: With this credit card the representative APR is 15.9% (variable) based on an interest rate of 15.9% (variable), transfer fees of 3.1% and a credit limit of £1200.
Bank of Scotland Plus	0% 18 mths 3% Fee	0% 3 mths	16.9% (variable)
	Representative example: With this credit card the representative APR is 16.9% (variable) based on an interest rate of 16.94% (variable), transfer fees of 3% and a credit limit of £1200.
We provide a representative range of products on competitive terms and do not act exclusively for any credit provider. Credit limits may vary depending on your circumstances.

However, a 0% balance transfer credit card may not be the best way of repaying debt for everyone - so if you`re unsure, talk to a debt adviser about your options.

How can a 0% balance transfer deal help?

Moving existing debts onto a 0% interest credit card can help in a number of ways. The interest-free period allows you to repay more of your debt in a shorter space of time, as you won`t be paying any interest on what you owe.

You`ll also be replacing multiple debt repayments per month with just one, which can make keeping track of your finances a lot easier.

When is a 0% balance transfer credit card the right option?

Like any credit card, a 0% balance transfer deal will have an agreed credit limit. This can vary from card to card - and can also depend on your credit rating - but it`s unlikely that you`ll be able to borrow as much as you could with other types of credit, such as a loan.

As such, you`ll probably only be able to consolidate your debts with a credit card if your level of debt is relatively low. If you have larger debts that you want to consolidate, a debt consolidation loan may be a better option.

Also remember that a 0% balance transfer deal will only be a viable option if you`re sure you can repay what you owe. At the end of your 0% interest period you will have to either find another similar deal or start paying interest, which could be quite high, compared with other forms of credit. You should ideally be able to repay a good proportion of what you owe (if not all of it) before the 0% interest period ends.

If your debts are causing you problems, or if you have any doubts about your ability to repay everything you owe, you should really talk to a debt adviser before you commit yourself to anything.

Compare 0% balance transfer deals with our free comparison table.

Tags: credit cards, debt, repay debt, repay debt with credit card, repaying

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.