How balance transfers work
You apply for a new credit card that offers 0% interest on balance transfers. Once approved, you transfer existing credit card balances to the new card.
The transferred amount is now on the new card at 0% for the promotional period (12-30 months typical).
A transfer fee of 2-4% is added to the transferred balance.
When balance transfers work well
You have a repayment plan for the transferred amount within the 0% period.
You do not spend on the new card (new spending usually attracts interest at the standard rate).
You avoid the freed-up capacity on your old cards (either by closing them or by strict self-discipline).
You qualify for a limit large enough to cover your existing balances.
When they fail
You do not repay within the 0% period and get hit with the standard rate (typically 20-30% APR) on the remaining balance.
You continue spending on the old cards, accumulating new debt on top of the transferred debt.
You take a card with a longer 0% period but a higher transfer fee that ends up costing more overall.
Alternatives to consider
Personal loan consolidation is a fixed-term alternative — often at 5-15% APR total cost.
Persistent debt route with your existing card provider can be cheaper if their rate is low.
DMP if the underlying problem is unaffordability rather than high interest.