Are you still paying interest on your credit cards?

Paying interest on credit cards is simply unnecessary for anyone with a decent credit history. This week's deal is the best balance transfer cards, which move debts to where they're cheapest, possibly saving you £1,750.

What is a balance transfer?

This is when one card pays off the debts on other cards for you, so you owe it the money instead. This 'transferring the balance' is usually done because the debt is moved to a special cheaper rate.

To do it you need to ask for a 'balance to be transferred from another card'; don't try to do it yourself by withdrawing cash on the new card. Just tell the new provider which cards other debts are on and how much to pay off them and it should be done.

WARNING. Never, ever, ever, ever spend on a card after balance transferring to it!

Choosing the right deal

Two questions decide which balance transfer type is tastiest for you.

1. Can you pay off the debt within roughly a year?

Yes. Get the longest 0% deal possible, so you can pay off your debts without being charged interest.

No. Then answer the next question.

2. Are you willing to change cards every six to nine months?

Yes. It's still 0% offers for you, as you're ready to become a credit card tart, which means disloyally re-balance transferring your debts each time the 0% period ends, so your debts are interest free. Yet this requires a decent credit score, so those who sometimes fail when applying for new cards should answer No.

No. Forget tarting. Go for a 'stable relationship' life of balance transfer offer, a no-hassle way to get a long term low interest rate.

Being a credit tart

For anyone using the 'Tart' route there are a couple of golden rules to remember before you begin.

1. Always switch the month before the 0% ends.

In the month before the 0% ends move the debt again to another 0% offer. To do this you'll need to apply about 6 weeks before the deadline. Be disciplined.

2. Interest-free doesn't mean nothing to repay

All cards have a 'minimum monthly repayment' and if you don't meet this you may be fined and lose any special offer deals. Set up a direct debit even if its just for the minimum repayments as you can always make further repayments each month on top.

3. Changes to 0% offers over the past few years

While it used to be 'the longest 0% the better', this is no longer strictly the case. There are a range of other factors to consider.

• Balance transfer fees. Do a balance transfer and you may be charged a fee e.g. 2% of the amount transferred, capped at a maximum of £50, so you may pay no interest but you pay more on top.
• Low credit limits. Many cards with 0% are decreasing the amount they're willing to lend, as an easy way to cut costs. Unfortunately there's no easy way to assess the likely credit limit, though anecdotal evidence suggests Barclaycard's are low and cards managed by MBNA (Virgin, Alliance & Leicester, Abbey) are high.
• Super balance transfer ability. Super Balance Transfers allow customers to pay off loans or overdrafts with them, as well as credit cards.
• Existing customer balance transfer offers. Many providers will offer existing customers the ability to move more debt to them again at a cheap rate . If you are going to add to your card arsenal it is good to consider a card which may provide future benefits too.

The winning credit card

The winner is the Virgin card's 9 month 0% with no balance transfer fee for any transfers made during the entire 0% period and the ability to perform super balance transfers.