Nothing in life is for free and in particular this does apply to financial products!

Should I be careful about with those 0% credit card balance transfer offers?

The major trap with these offers is in the conditions. They are usually interest free for a period (sometimes 3 or 6 months) and only on the amount transferred over from an existing card. After this honeymoon period the cards go to a high interest rate sometimes over 20% per annum. If you are disciplined and pay it off in time you could save money. I have seen some of my clients use this strategy and it has worked like a charm and for others it has been a world class flop!

Although these offers appear enticing it's important that you understand all the details and have a plan to repay the debt and be disciplined in doing so.

In preparing in this article, we have not taken into account any particular persons objectives, financial situation or needs. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain financial advice specific to their situation before making any financial investment or insurance decision.