Balance Transfers

This is the process of transfering an unpaid credit card balance from one or more credit cards to another. Often the card receiving the balance will charge the card holder a balance transfer fee.

The advantages are twofold. Firstly, it will enable you to manage your overall debt better by placing all your existing credit card balances into one single credit card. Secondly, you should be able to get either a low APR interest rate for the life of your new credit card agreement or even enjoy Zero APR interest for a specified period which could be anything from 3 months to a year.
When dealing with many credit cards and a large amount of total debt the savings may be huge.

A recent phenomenon is playing the eternal 'balance transfer game' where people are moving balances from one credit card to another as the interest free period comes to an end. It is by no means illegal and not even immoral. The credit companies expect this and are not worried in the slightest! After all, you will definately run out of credit cards at some point, even with a regimental sign-up, transfer and cancel policy. Also, the majority of people end up forgetting to move the next balance on due to their busy and hectic lifestyle!
Remember to document your credit card agreements carefully, allow time for new management of the debt as a low interest period expires and to ensure you are not signing up to a high signing-on fee, mandatory card insurance plan or that you will not be hammered with an outrageously high APR on your dent balance once the low interest period expires.

Tip:
First figure out the most you could pay each month on these accounts combined. Apply for a card that offers 0% APR for twelve months and transfer the balances that are accruing interest to this new account. Now remember, you're saving interest each month. Then you could use the credit card as much as possible for daily expenses, keeping track of and setting that amount aside each day. At the end of the month, you should pay the amount determined which you could afford on the balance transferred and then pay the entire amount charged for the monthly expenses.
By doing this, you would be paying off the older balance with a 0% interest rate and earning rewards at the same time. At the end of the twelve months you may very well have enough points to take that planned trip. Your credit card balance should be paid off almost completely.