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Credit card balance transfers can be used legitimately as a way to repay debt. One of the major advantages of choosing this method of repayment is that a lot of credit cards offer 0% rates on balance transfers. A 0% rate ensures that after paying the initial arrangement fee no other charges apply as long as the balance is repaid or transferred somewhere else before the introductory period expires.

A second significant benefit of repaying debt using a credit card balance transfer is you can change the sum you repay each month to suit your budget. You should always try to repay the highest you can afford so the debt reduces faster however paying less in certain months is an available option. You may decide to pay less in a month if you require the money for other things.

By repaying debts using this method you can prioritize which debts incur higher interest and reduce them first. Try to select a credit card company that offers an introductory rate of 0% and transfer as much of your debt as possible allowing you to focus on repaying any other more expensive debts first. This will mean your debts cost you less as you repay them.

You should remember a number of critical points if you choose to reduce your debts using this method. Most importantly remember to always make at least the minimum payment on time. Failure to do this will almost certainly incur additional charges and end any introductory balance transfer rate. Always make payments with plenty of time or again you could be charged and lose the introductory rate. If for some reason you cannot pay on time contact the credit card company before the payment is due to explain your reasons why the payment will be late.

You should also remember to repay the most expensive debts first. Any additional forms of borrowing you have with higher interest rates will cost you more and you should concentrate your payments on these debts first to reduce your borrowing. After repaying higher interest debts you can then repay the next highest and so on.

Always repay as much as you possibly can from your debts. Any introductory rate on your credit card transfer will not last forever and the quicker you reduce the balance the sooner you can forget about it. If possible do not add additional spending to the balance transfer as this incurs higher interest charges than the original balance transfer and will not be repaid first.

When you sign up for the credit card make a note of the time of the introductory period of the balance transfer. As you get closer to the expiry date look around for a new card company to transfer any remaining debt to. Don’t worry if you get turned down for the first one you apply for, there are lots of card companies out there offering low introductory balance transfer rates. Once you have arranged a new card, hopefully at 0% interest on balance transfers, transfer your money from the old card to the new and cut up your old card. You’ll have to pay a small fee for transferring the debt and if the rate is low enough you’ll pay no interest again.

Try to make sure that you live within your budget and do not use easy credit as a way of purchasing items. Any money spent on credit cards will eventually have to be repaid or you’ll face difficult bankruptcy procedures that may affect your credit rating for years. It is possible to clear all your debts using this method, depending on the size of your debts and the amounts you can repay each month. It may take a long time but you will eventually be debt free. I was in debt for several thousand pounds and used the above method to clear my debts and now live a debt free and happier life.