A 0 percent balance transfer offer sounds good for those wishing to consolidate their debt.
0 percent interest is a very appealing offer but there are usually other ways a credit card company will make money off of it.
One thing that should never be forgotten is that with every offer from any financial institution, they bottom line is they want to make a profit from your debt.
Like all business, they are in business to make money and nothing is ever offered to anyone without a catch.
For the 0 percent balance transfer there are usually two catches.
The first is that great 0 percent interest on the balance transfers are only for a limited time.
The limited time usually runs for 6 to 12 months.
With the billing cycles shortened now to 20 or 25 days, the time limit is sometimes stated as billing cycles instead of months.
Be sure you know when the offer ends and if the balance can be paid off by then.
The reason to know how low the balance will be when the 0 percent balance transfer offer expires is because of the "go to interest rate".
This rate is generally higher than the national average.
The second catch is the fee associated with the funds that are transferred.
This can be as much as 5% of the balance that is transferred.
Another way of putting it is for every $1000, you pay the credit card company $50.
For these two reasons it is best to do the calculations of all the fees and associated cost when consolidating your debt.
For some, this great sounding offer will cost them more than just leaving the debt were it is.
A 0 percent balance transfer offer is not for everyone.