Martin's Credit Card Cost-Cutting Masterclass
If you pay interest on credit cards, you can't afford not to check if you can shift it to the new, longest, 29mths 0% - or special 0% deals if you've got poor credit

It's my first day back at my desk after the summer break, and having seen figures just released by the Bank of England showing consumer credit borrowing soared by £300m in July, and credit card borrowing is up almost 8% over the year, I want to again focus on showing you how to cut existing card costs - especially as we're tiptoeing towards the high-spend festive season.

Debt can be depressing, dangerous and debilitating, but ignoring it only makes it worse - the best time to tackle it is RIGHT NOW. In future, I'll look at existing loans (though it's tough to cut costs as rates are high) and overdrafts (no great deals on at the moment, but I hear rumours some may be due, so will wait until that).

Panicked about your debt? Jump straight to debt crisis help.

The key weapon is a 0% balance transfer, where you get a new card that pays off debt on existing cards, so you owe it instead, but interest-free for a set period. This way more of your repayments clear the actual debt, not just mostly cover interest. Before I go into the best buys, I've three need-to-knows...

- To AVOID REJECTION, spend two minutes on a 0% eligibility calculator. This shows which of most top cards you can likely get, listing your bespoke acceptance odds for each. That way you can minimise applications, and protect your creditworthiness.

To show the impact, we were recently emailed by Raheem: "Due to rising costs we quickly racked up nearly £6,000 on a credit card. Our anxiety worsened on the £90+/mth interest and the feeling that we couldn't get out of a hole. Then my wife remembered about your balance transfer eligibility checker. We put the details in and within minutes were approved for a 0% balance transfer for 27 months."

- Checking DOESN'T impact you. Our eligibility calc does a soft not a hard search, so you see it on your file, but lenders can't use it to assess you.

- Go for lowest fee within 0% time long enough to clear debt. Longer balance transfers usually have a bigger one-off fee to transfer. So if you've a choice and can clear your debt quicker, go for a shorter deal to minimise fees. Unsure? Play safe, go long.

Now, on to the deals for those with poorer credit histories. The big difference here is the 'go-to' rates - the APR they move to when the 0% ends is much higher, often around 30%, and could be higher than the cards you currently have.

If it is higher than your current card, ONLY move an amount you're sure you can repay within the 0% period. If it's the same or lower, shift as much as you can.

If you do a balance transfer, follow the Golden Rules

1. Clear all debt before the 0% ends. Pay it off or balance-transfer again before the 0% ends or you'll pay the rep APR.
2. Never miss the minimum monthly repayment. Or you can lose the 0% rate. For safety, set up a Direct Debit for at least the minimum (and then make additional manual payments on top).
3. Don't spend/withdraw cash on the card. It usually isn't at the 0% rate, so will be expensive and it's best not to build up more debt.
4. Do the transfer on application. If not, check the time limit. If you don't do it as part of the application, you've normally 30 to 90 days.
5. Doing a poor credit transfer? This should be seen as an indication to be careful with your finances. Try not to borrow any more, and do a budget.

What you often ask me about balance transfers...

I've been talking about this for over 20 years (I know, I look too young for that), and these are the most common questions I think I get asked...

Q. Should I apply if my best eligibility score is low, say only 20%? Cutting debt costs is important (usually only trumped by a mortgage application), so go for it. While 20% odds are low, it means it's likely two in 10 who apply will succeed, and it could be you. And if you're rejected, barring a minor credit file application mark, you're no worse off. So the upside massively outweighs the downside.

Q. What if the credit limit I get isn't high enough for all my debt? If you get accepted for a card but the credit limit isn't big enough, the application's already on your credit file - so shift as much of your highest APR debt as you can to the new card (usually they allow you to shift to up to 90% of the credit limit). Then once done, use our eligibility calculator to see your chances of acceptance for other providers' cards to move the rest.

Q. Can a balance transfer hurt my credit score? Shifting a balance from one card to another isn't recorded on your credit file, so you're free to balance transfer as many times as you like. However, a footprint is added to your file every time you apply for a new credit card. Multiple applications, especially close together, and high outstanding debt, even at 0%, can affect your ability to get further credit.

Yet don't let that put you off. This isn't a flippant application. Cutting expensive debt costs is one of the reasons you try to keep a high credit score - so you can do it. If you like, it's 'worth spending your credit score on'. See our Credit scores guide for full information.

Q. What if the eligibility calculator says 'no chance' for all cards? That makes things difficult. Our calc is only an estimate based on the info we get from firms, but it likely means rejections from all those we include. There are still some things you can do to help the situation though, which conveniently (it's almost like I planned this) I'm just about to write about...

i) Focus on clearing the highest-interest (APR) debt first. List all debts in APR order, and use all spare cash to clear the highest (as it's growing fastest), and just pay minimums on everything else. Once it's clear, focus on the next costliest, and so on and so forth. That'll get you debt-free quicker. This includes overdrafts, especially as they're often costlier than credit cards (but that doesn't include student loans).

If you have room on your credit limit on any of your existing credit cards, they may allow you to shift debt to them either at a special rate or at the APR. If that's lower than where the debt is, try it. More help in the credit card shuffle.

ii) Don't look at debt in isolation. No one gets into debt for its own sake; it's to pay for other things. So you have to look across all your expenditure... go through everything you spend money on and see if you can do it cheaper or better. Our money makeover takes you through some of that.

iii) Do a budget. As well as cutting costs, get control of all your spending. The best way is to do a budget, looking across a year to see where the cash is going. Then what really counts is how you stick to it - many who have tried it swear by (or at) my piggybanking system.

iv) Check your eligibility rating, to find and boost your real-world credit power. I mentioned it earlier, but our revamped free Credit Club offers a range of tools and calcs that give you a sense of how the financial world sees you. Everyone who has debt, or needs credit, should be exploring it in detail.

v) Got savings? Use 'em to clear costly debts. Millions still have savings, though many are using them up. Some have an emotional attachment to them ahead of clinical financial decision-making.

Yet saving is just giving your bank a loan. So if your credit card, loan or overdraft debts are at a higher rate than your savings earn, repaying the debt with the savings will likely add up.

Never is this clearer than with a costly credit card, as if you clear it and that leaves you with no emergency savings, just keep the card open. That way, the worst that can happen is you use it again in an emergency - at least you saved interest in the meantime. See pay off debt with savings? Related: Should I overpay my mortgage?

The solutions above all involve you being in a functional relationship with your debt. In other words, you can afford to repay and you just want to cut the cost. But for some, a different tack is better - full help in our Debt crisis help guide, but in short, I have three key questions I came up with to help you decide which route is right...

- Do you struggle to meet minimum monthly payments?
- Is your total debt (not mortgage/student loan) over 1yr's salary?
- Do you have sleepless nights or depression/anxiety over debt?

If you answer 'yes' to any of these, forget the solutions above, and instead get free, one-to-one non-profit debt-counselling help from charities like Citizens Advice, StepChange, National Debtline or CAP (which gives emotional support too).

They're there to help, not judge. Just go for it, the most common thing people tell me after is: "I finally got a good night's sleep."

For some inspiration, do also read stories in our Debt-free wannabe forum. And it's worth seeing our Mental Health & Debt guide too.