Generous introductory offers on balance transfer credit cards have been steadily re-emerging in the years since the credit crunch. With proper use they can provide the cheapest escape route for those resolved to clearing their debts.
Freedom: Balance transfer cards are a useful tool to help you get out of debt.Switching your debts to a balance transfer card can speed up the repayment of debt because most, or all, of your repayment goes toward wiping out the balance and not paying interest. The best deals offer up to two years of 0 per cent interest in exchange for a switching charge.
Those with short to medium-term debts can use such offers to finally get out of the red, while those with much more to repay can look to these cards to provide a lower cost alternative to their existing debts.
But beware: there are caveats to consider and barriers to overcome when applying for such cards (see box).
Many balance transfer cards also come with a 0 per cent period for new purchases as well - card companies aren't providing cheap credit as a favour, they want you to spend more on the card and maintain that new debt, which is much more profitable for them.
Remember, you are trying to repay your debts, not build up more. So think hard before buying anything else with credit.
This is Money has compiled a selection of the best deals currently available in the balance transfer market.
This page is kept updated throughout the year - bookmark it for the very latest developments.
Longest interest-free period cardsMarket leader: After being pipped to the post by new offerings from NatWest and RBS, Barclaycard has come back fighting with a new offering.
The bank has increased the 0 per cent period from 26 to 27 months on its Platinum extended balance transfer card.This means Barclaycard has reclaimed the top spot offering the longest interest free period.
Its new offering comes with a 3.5 per cent fee, which means you would pay £35 to transfer over £1,000 from other credit cards. Any amount you transfer must not exceed 90 per cent of the credit limit on the card.
Barclaycard has recently introduced a new offer whereby you can apply for a £10 fee refund on balances of £2,000 or more.
Those struggling with credit card debts can also buy themselves 26 months of time to pay back what they owe without accruing any extra interest with Natwest and RBS.
The banks recently increased their interest free periods from 24 to 26 months and knocked 0.25 per cent off balance transfer fees on both their Platinum and Platinum Low BT card offerings.
Although Barclaycard's updated offering is one month longer, Natwest and RBS offer a slightly lower fee of 2.65 (decreased from 2.9) per cent.
All deals also include interest-free purchase periods of six months. Interest then leaps to 18.9 per cent.
Barclaycard also has a second product - its Platinum Credit Card for balance transfers - which has a slightly lower 25 months' interest free. The 3.5 per cent handling fee falls to just 2.4 per cent, or £24 on £1,000, if you transfer your balance within 60 days.
A refund will be credited to your account two days after your successful balance transfer.
You must have a salary of at least £20,000 to apply for both Barclaycard products.
Halifax also offers an interest-free balance transfer deal for 25 months, with a 3 per cent fee, on its Halifax Balance Transfer Credit Card.
This drops to 2.5 per cent - cementing its position as the third best balance transfer credit card deal currently on the market - as long as you transfer your balance within 90 days of opening the account. Halifax will then refund the difference within 30 days.
For example, if you transfer £1,500, a 3 per cent fee of £45 will be applied. Halifax will refund 16.6 per cent of that - £7.50.
You must transfer a minimum of £100 to qualify for the deal. This card has a fee-free purchase period of just three months.
Tesco Bank's Tesco Clubcard Credit Card for balance transfers follows close behind in fourth place.
It comes with a balance transfer fee of 2.9 per cent, or £29 on £1,000, and you are allowed to transfer up to 95 per cent of the credit limit.
Tesco also offers a more generous interest rate of 16.9 per cent representative APR once the interest free period ends, with Barclaycard and Halifax offering 18.9 per cent on their cards. Using the Tesco card also builds up Clubcard rewards.
Find out more about how you can clock up Clubcard points on your credit card with This is Money's best credit card guide
RESTRICTIONS ON BALANCE TRANSFER CARDS
Being approved for a balance transfer card is by no means guaranteed.
In theory, those with the best credit ratings are the most likely to be approved for a card as they will have a history of paying off debt on time and have a stable income.
It is more probable that those with poor credit ratings will be rejected.
Those who are refused should bear in mind that applying for a number of other balance transfer cards in a short space of time will worsen their credit rating.
Many card providers will not allow you to transfer balances from another of its own products, so you should identify the best deal for you outside of your existing providers before making an application.
Some providers meanwhile may only accept your application if you already hold a current account with them.
There are other restrictions you will also have to satisfy, such as having a minimum level of income (generally £10,000-£20,000).
And to take advantage of introductory 0 per cent offers, you will have to transfer your balance within a specified time-frame.
Other cards that have similarly long interest-free periods include the MBNA Platinum Credit Card.
The deal last 24 months, and you will be charged a handling fee of 3.5 per cent, or 4 per cent on money transfers (MBNA allows up to £3,000 of your credit balance to be transferred to a current account).
This has recently been reduced to 2.85 per cent if you apply online via mbna.co.uk
Its interest rate at the end of the introductory period is 16.9 per cent on both balance transfers and card purchases after a three-month interest free period.
Lowest handling fee cardsFor those confident they can pay off their credit card debts in a short space of time, then getting a balance transfer card with a lower handling fee, but lower interest-free period, can limit the extra charges on your debt.
Market leader:
Barclaycard is once again ahead of the field when it comes to low handling fee cards.
Barclaycard Lowest BT Fee cardholders are initially charged a 1.2 per cent balance transfer fee, but this is reduced to 0.9 per cent within 28 days of your transfer.
The difference will be credited to your account and you will be charged 0 per cent interest for 12 months.
The next best option is the Halifax All in one Crefit Card, which charges a slightly higher 1 per cent flat rate on its balance transfer fee, but has a much longer 15 month interest free period.
This fee again works in the form of a refund from an initial 3 per cent charge. The refund will appear on your balance within 30 days of the qualifying transfer completion date. This deal is available until June 25.
Other options include the Natwest Platinum and the RBS Platinum Low BT Fee cards.
The Natwest Platinum Low BT Fee Card and the RBS Platinum Low BT card, are also at the top the tables for the market's lowest handling fee.
While alternative credit cards offer longer interest-free periods on balance transfers - the offer on both only lasts for 13 months - the major advantage of these cards is that they have a balance transfer fee of just 1 per cent.
The minimum amount you can be charged is £5 and you must make your balance transfer within three months to qualify for both cards.
The APR leaps to 17.9 per cent once the interest-free period ends.
Best low rate balance transfersPeople who have racked up substantial credit card debt which is unlikely to be paid off within two years can plump for balance transfer cards which offer lower rates of interest.
However, those who are considering this option should seek advice as to whether there might be a better deal to be a had consolidating such debts into a loan, particularly with borrowing rates at record lows at the moment.
Market leader: MBNA Rate for Life Credit Card Visa
The 'Rate for Life' card offers interest of 5.9 per cent APR Representative for the life of your balance transfer.
This means you will pay a much lower rate of interest until the initial balance transfer is paid off, at which point it reverts to the standard 18.9 per cent rate.
This is a significantly lower level of interest than typical credit cards.
The AA also offers a 'lifetime' balance transfer term, but with 6.9 per cent APR.
Other low-interest offers come from Sainsbury's Bank (with 0 per cent transfer fee), Barclaycard (but only for 36 months) and Natwest (just 12 months).