Balance transfer advice given

Those on the search for a 0% balance transfer have been advised to do so with caution.

In a recent Money-AU.com article, Aussies hunting for such a credit card deal were reminded that despite making the move to a 0% credit card this does not mean they are immune from facing any fees.

With the publication pointing out that a percentage of the total debt they are shifting will be charged as a balance transfer fee, borrowers are advised to calculate the cost of this and consider whether it will be more expensive than sticking with their existing card.

Furthermore, Money-AU.com states as that the low interest rates attached to 0% balance transfers are often only available for an introductory period only borrowers should attempt to pay off as much debt as possible before such an offer expires.

It was also claimed that should they be late in making a payment, borrowers may find that the entire balance transfer deal is cancelled.

Earlier this month, the publication pointed out that falling behind with a demand for payment could result in "an extremely negative impact" on a borrower's credit report.

Written by Kate Guthrie.