Money Saving Expert founder Martin Lewis has issued a fresh warning to people who are looking to clear any credit card debts they may have.
During this week's episode of his Money Show with ITV, the financial expert explained the term 'balance transfer' and how those who have accrued debts relating to credit cards might need to act instantly.
In essence, a balance transfer is the act of shifting a current credit card balance to a new card which holds a 0 per cent period - meaning that you stop paying interest for a set timescale.
Read more: Martin Lewis warns that millions are being underpaid on cash ISA savings accounts
The Mirror reports that by not paying interest, you'll clear your credit card debt more quickly - and only pay back what you owe. Martin noted that you should be looking for the card that gives you the enough time to clear your debt and with the lowest fees.
However, the Money Saving Expert noted that some of the longest deals are disappearing.
Martin highlighted that a few years ago, there were much better credit card deals on the market and due to the Bank of England continuous base interest rate rises, deals could get worse. This is due to the fact that because of the interest rate rises the cost of borrowing has become much more expensive and banks are putting that onto consumers.
This has caused the 'one-off fees' you pay when doing a bank transfer are getting higher because many of the cashback deals that they used to give you are going away as well. Martin said: "My message is if you've got credit card debts and you need to sort them, sooner, is safer."
"If you cannot afford to clear your credit or store cards in bulk, if you're paying interest, you cannot afford not to check for a 0 per cent balance transfer. I'm not saying you'll get one I'm saying you need to check the one because that is the prime weapon in cutting your costs."
With balance transfers, Martin explained how there were two rules you would need to note. He added: "First, don't just apply for one, that puts a mark on your credit file and each extra mark on your credit file can hit your creditworthiness, especially in a short space of time."
To avoid this, the Money Saving Expert said you could use a balance transfer eligibility calculator which can be found online, both on the individual card providers' websites, or on many comparison sites. The calculators look at lots of different cards and will then show you which one you're most likely to be accepted for.
Martin added: "So you can home in and apply for that card without putting marks on your credit without protecting your credit score."
The second rule was if you've got a choice of cards, you want the one with the lowest fee in the time that you need to repay. Martin then explained how sometimes, you can be told that you only have a small chance of being accepted onto a card and people may not think it is worth applying.
However, Martin explained that the reason we have to work hard on achieving a good credit score was to be able to access cheaper debt when we need it, that is exactly what we are 'saving up for'. He explained: "So if you only get one card with a 10 per cent chance, if your priority is cutting the cost of that card, make the application it may fail, you may get the mark on your credit file, so what, at least you tried.
"You could also be the one in ten who gets it, so just an important message on that one."
Finally, don't spend on a balance transfer card - as you could lose your 0 per cent period offer.
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