A 0% balance transfer card is an excellent tool for clearing debt, but it is rarely entirely free.
The Transfer Fee
Most 0% cards charge a balance transfer fee, typically between 1% and 3% of the amount transferred. On a £3,000 balance, a 3% fee adds £90 to your debt immediately.
The True Cost
To find the true cost, you must factor this fee into the duration of the 0% period. A card with a 0% period for 12 months and no fee is often cheaper than a card with a 24-month 0% period and a 3% fee, provided you can clear the debt in 12 months.