There are a lot of credit card products on the market to choose from. As a consumer, it’s difficult to know which one to pick.

If you’ve got a lot of high interest debt you may be considering a balance transfer credit card. Balance transfer credit cards have been steadily gaining popularity over the past decade with most financial lenders offering at least one balance transfer product. While they all sound great, there are a lot of things you need to know before signing up.

We’ve put together this handy overview to help you make sense of it all.

What is a Balance Transfer Credit Card and how does it work?

The premise behind balance transfer credit cards is pretty straightforward. They enable you to transfer an existing high rate credit card, store card, or store loan debt to a card that has a significantly lower rate of interest.

How can a balance transfer credit card help you?

If you’re carrying a reasonable amount of debt on a credit card that is charging a high rate of interest, you’ll benefit from a balance transfer credit card: Here’s why:

• You can pay off your existing, high rate debt.
• If your debt spread across several high interest store cards or loans you can consolidate them all into one payment.
• Your existing debts can be paid automatically, by the new lender, as soon as you activate your new card.
• Your new balance transfer credit card will have a special low introductory rate that makes it easier to pay off your balance quickly.

When should you use a balance transfer credit card?

This particular type of card has a couple of caveats that you need to be aware of. A balance transfer card should be used for just that. Using it for anything else may get you in trouble. The interest rate on purchases and cash advances on a balance transfer card are pretty steep and they’re also subject to payment hierarchy which means you won’t begin to pay them off until you’ve finished paying off the balance transfer debt.

Types of balance transfer credit cards

Each balance transfer credit card has a range of value added features that may suit your situation. Some of them offer rewards or discounts. Some even waive fees. The main point of difference, and perhaps the most important factor for you to consider, is the duration of the introductory period. These periods are generally 6 months, 9-15 months and life of the balance.

6 month introductory period cards generally have the lowest interest rates, ranging from 0% to about 4%. 6 month cards are perfect if you only have a small amount of debt you need to pay off.

9 - 15 months introductory period cards have interest rates that vary between 2% - 5%.Generally the rule is, the shorter the term, the lower the rate of interest.

Life of the balance cards are a little harder to come by. A life of the balance card enables you to pay a lower rate of interest for as long as it takes to pay off your card. Most of these offers tend to be on Platinum cards which have substantial annual fees and very stringent requirements.

How to find the right card

It’s now much easier to find a balance transfer credit card that will be right for you. Creditcardresearcher.com.au is kept up to date with all the latest info on the best deals that we come across. Use our handy balance transfer comparison table to scan through all the latest offers and review the rewards and discounts you’ll receive on each card.

But before you go ahead and apply for a balance transfer credit card make sure you know the answers to the following questions:

1. When does the low/no introductory rate end?
2. What will the rate of interest be after the introductory period has ended?
3. Are there any fees associated with the balance transfer?
4. Is there a specific window of time where you must perform the balance transfer?
5. What are the interest rates for purchases and cash advances?
6. Is the account subject to any fees (late repayments or annual fees for example)?

Once you’ve got a good idea of all the fees, charges and stipulations you can apply for a balance transfer credit card directly from CreditCardResearcher.com.au. Just push the green Proceed button that appears next to each card in the comparison table. Quick, easy and hassle-free. You’ll have your debt under control in no time.

If you're ready to apply for a balance transfer then check out the latest balance transfer credit card deals.