Martin: 'Length isn't everything... now's the time to grab a NO-FEE 0% debt shift'

Paying credit card interest? Sort it quick as deals are getting worse

It's taken me a while, but finally I've come to believe longer isn't always better. For years when listing balance transfer cards, which cut the cost of existing debt, I've always led on the longest 0% deals.

Yet they charge a one-off fee, which has been as high as £40 per £1,000 shifted. And after years of 0% deals getting ever longer, now they're shrinking. Today's best is 36mths, a year ago it was 43mths.

The longest NO-FEE deals however have stayed stable at 28mths 0% - so for most, now, the extra length hardly justifies the fee. And as the direction of travel seems to be shorter 0%s, sorting sooner is safer. Here's what you need to know...

• With balance transfers the new card pays off existing credit and store card debts for you. So you owe it instead, but at 0%. This means your repayments clear the actual debt rather than just cover the interest, so you're debt-free quicker. Usually you can shift up to 90% or 95% of the credit limit you get. 
   
• YOUR best-buy balance transfer cards. I've listed best buys below, but what counts is what you'll be accepted for. Our Balance Transfer Eligibility Calculator lets you home in on cards you're most likely to get, minimising applications thus protecting your credit score.
  
  And shifting debt can save you large, as Adele tweeted: "Just saved over £1,200 in interest switching my card thanks to @MartinSLewis."
  
  

• How to pick the right card for you.  Assuming you've got the eligibility calc results, and have a choice of cards... 
  
  - Go for the lowest fee in the time you're SURE you can repay. Before getting a card with a fee, work out if you could clear the debt quicker to avoid it. Calculate the monthly repayment needed by dividing the debt by the 0% months.
  
  If you're uncertain, length can still be comforting; play safe and go long - a fee's better than paying higher interest later.
  
  - Even cheaper than no fee is to get paid to shift debt. Two best-buy cards above give cashback. For some transfers this can be more than the fee. Eg, shift £1,000 to the MBNA card and you get £25 cashback with an £11.50 fee, so you're £13.50 up.
  
  - If it's an 'up to' you may get a shorter deal. Card firms often don't make a song and dance about this, but we do. Apply for an 'up to' card and you can get a shorter 0% than advertised. So if you've a good chance of getting a non 'up to' deal, it's worth considering.
  
  
• Is it worth applying if the eligibility calc only gives me a low chance? I once sat with a MoneySaver who had large, costly credit card debts and a poor credit history. The eligibility calc showed zero chance for all cards except 20% odds with Halifax. She asked: "Is there any point?"
  
  I explained that as it was the only thing she needed credit for, 20% was better than nowt and the worst that could happen was she wouldn't get it. She applied and got a 26mths 0% card - £1,500 limit.
  
  So if cutting your card debt is your priority, do it. Hayley tweeted: "I finally got off my lazy backside and did a balance transfer. Thanks to @MartinSLewis and @MoneySavingExp for making it a lot easier than I was expecting. Here's to saving £300 a year interest." 
  
  
• The Balance Transfer GOLDEN RULES. Getting the right card's only half the job - how you use it is crucial too.
  
  a) Clear the card or shift again before the 0% ends or the rate jumps.
  b) Never miss the min monthly repayment or you can lose the 0%.
  c) Don't spend/withdraw cash. It usually isn't at the cheap rate.
  d) You must usually do the transfer within 60/90 days. 
  
  
• Credit limit not big enough? Sadly there's no real way to know what the credit limit will be for each card. If you apply for a card and it isn't enough to shift all your debt, the application will be on your credit file, so at least balance-transfer as much as you can.
  
  When done, apply for another card for the rest; and fingers crossed you're accepted. Each subsequent application can get more difficult as applications leave a mark on your credit report. Check it and your credit score for free in MSE Credit Club.
  
  

• Tried this, can't cut your interest, can't pay it or not sleeping due to debt? In that case the best thing to do is to get free one-on-one debt-counselling help from Citizens Advice, StepChange or N ational Debtline or emotional and debt help from CAP.
  
  All are there to help, not judge. The most common feedback I get after is: "I finally got a good night's sleep."  Full help in our Debt Crisis guide, and for inspiration see our Debt-Free Wannabe forum and my Mental Health & Debt guide.