Credit cards are becoming more and more popular these days especially those that offer low indroductory rates on balance transfer. Balance transfer credit cards allow you to move over debts from other credit or store cards - and in some instances even an overdraft. This is called a balance transfer and there are a whole host of credit cards offering preferential interest rates - many providers offering as low as 0% on balance transfers for 12 months.

With many standard APR rates on credit cards being 16% and higher - a balance transfer credit card can therefore offer a great way of reducing the cost of your existing debt, or debts.

What are the benefits?

If you have several credit cards with existing debts, then the one benefit of switching all your debts to one balance transfer card is that it will be easier to keep on track of all your payments, and how much you owe.

The main advantage, however, has to be the help of paying less interest on all your borrowings. If you have a good credit rating you could be accepted for cards offering 0% for up to 16 months.

What are the negatives?

The majority of credit card providers now charge a balance transfer or handling fee, which is a charge for the percentage of the amount of debt you need to switch to the card. This fee ranges from 2% to 3% of the balance transferred and needs to be taken into account alongside the interest rate before signing up to a deal. Saying that, if you are currently paying a standard interest rate of 16% or so, then this fee is well worth paying for.

However, bear in mind that the leading balance transfer credit card deals will normally be available to those with good credit rating. So if you are currently juggling debts and are looking to transfer them onto a cheaper credit card because you're struggling to keep up with your repayments, be warned, you may not qualify for the deal that initially catches your eye.

For a full list of credit card providers please click here.

AA Credit Card	American Express	BT Credit Card	Capital One	Halifax
Egg Card	MBNA Europe	Sainsburys	Tesco Card	Virgin Money