Fighting card debt with balance transfer

If you do find yourself mired in credit card debt, the best way to extricate yourself is with the judicious use of a balance-transfer offer.

These will transport your outstanding debt to a card that will give you a certain period in which you pay no or little interest on the amount transferred. New purchases are excluded.

Time for trap No. 1: some cards will charge you the exorbitant cash-advance rate on the unpaid balance transfer once the prescribed period ends.

Increasingly, card providers are using balance-transfer offers to lure customers to more expensive premium “platinum” and reward cards. The most common interest-free period is six months.

Source: Sydney Morning Herald