Borrow interest-free for three-and-a-half years! The best balance transfer credit cards to help clear your debts

Generous introductory offers on balance transfer credit cards have been steadily re-emerging in the years since the credit crunch. With proper use they can provide the cheapest escape route for those resolved to clearing their debts. 

Switching your debts to a balance transfer card can speed up the repayment of debt because most, or all, of your repayment goes toward wiping out the balance and not paying interest. 

The best deals now offer over three years of 0 per cent interest in exchange for a switching charge.

Interest freeze: An extended 0 per cent interest term can help borrowers clear their debts quicker

Those with short to medium-term debts can use such offers to finally get out of the red, while those with much more to repay can look to these cards to provide a lower cost alternative to their existing debts.

But beware: there are caveats to consider and barriers to overcome when applying for such cards (see box) below.

Many balance transfer cards also come with a 0 per cent period for new purchases as well.

Avoid the traps 

The crucial thing to remember is that card companies aren't providing cheap credit as a favour. 

They want you to not clear debts during the 0 per cent period and spend more on the card, which makes them money.

Avoiding falling into this trap is the key to balance transfer success. 

Remember, you are trying to repay your debts, not build up more. So think hard before buying anything else with credit.

This is Money has compiled a selection of the best deals currently available in the balance transfer market.

This page is kept updated throughout the year - bookmark it for the very latest developments.

Longest interest-free period cards 

Lowest handling fee cards

For those confident they can pay off their credit card debts in a short space of time, then getting a balance transfer card with a lower handling fee, but lower interest-free period, can limit the extra charges on your debt.

Competition is tight with the top four our five providers offering fees below one per cent and fairly decent balance transfer windows too.

Market leader:

Santander's 123 Credit Card pays out up to 3 per cent cashback on top of a 23 month interest-free window for both purchases and balance transfers - the longest available deal for those wanting to transfer debt and buy items without clocking up extra charges.

Even better, there is no balance transfer fee.

However this is offset by a hefty £24 annual card cost (rising to £36 from January 2016). 

Customers that open a 123 Current Account at the same time can avoid this charge for the first 12 months.

Halifax also offers to waive the transfer fee on its  23 month balance transfer deal if you make your transfer within the first 90 days.

It gives 6 months interest-free purchases and comes with a standard rate of 18.9 per cent.

The AA has a 22-month no-fee balance transfer deal. 

It gives 0 per cent for 3 months on purchases plus 40 per cent off European Breakdown Cover when you book a minimum of 3 days cover before 1st April 2016.

Standard interest is charged at 19.9 per cent APR.

Alternatively Tesco Bank charges no fee to move debt to its Clubcard Credit Card with No Fee.

It offers 21 months 0 per cent interest on balance transfers but only a single month of interest-free purchases as well as offering clubcard rewards for spending. After the introductory period ends interest is charged at 18.9 per cent.  

Credit card deals Of the week

0% interest

40-month balance transfer deal

Representative 18.9% APR (variable)

Puchase card

27 months 0% interest purchases

Representative 18.9% APR (variable)

Clubcard points

21 months 0% on purchases

Representative 18.9% APR (variable)

Low rate

Fee-free transfers & low rate

Representative 6.4% APR (variable)

Cashback

5% cashback for 3 months then 1.25%

Representative 28.2% APR (variable)

Best low rate balance transfers

People who have racked up substantial credit card debt which is unlikely to be paid off within two years can plump for balance transfer cards which offer lower rates of interest.

However, those who are considering this option should seek advice as to whether there might be a better deal to be a had consolidating such debts into a loan, particularly with borrowing rates at record lows at the moment.

Market leader: TSB 

TSB's Advance credit card charges 4.9 per cent interest on balance transfers for the first 12 months. 

After that the rate reverts to the standard card rate of 11.9 per cent which is still significantly lower level of interest than typical credit cards.

You will pay a three per cent transfer fee and in order to get the introductory rate you will have to transfer your balance in the first 60 days.

The cards also come with six months 0 per cent interest on purchases.