Recent research suggests that over 60 percent of individuals who obtained one of the 0 balance transfer credit cards out there to help with their credit card debt ended up spending on it and running up large interest bills. When these people do spend on one of these cards they are borrowing at a much inflated APR What is even more alarming is that when asked a third of these people never intended to buy anything with the card in the first place they just got it to transfer the balnce of a previous card.

In nearly all cases with 0 balance transfer credit cards the repayments made on them are used to service the cheapest debt initially and that causes the interest to build much higher than the customer realises. Basically the credit card company will pay down the low-rate debt from the original balance transfer and after that is completed then look at any additional debt.

When peoples finances are squeezed the temptation to borrow in excess of what is required can be very difficult for some people to overcome, as is trying to implement a change in an individuals spending habits In the right hands these 0 balance transfer credit cards are a very powerful tool to service existing credit card debt from another card by taking full advantage of the lower rate.Problems with this usually stem from the difficulty of most of these people fighting the battle and trying to change the old habits of over spending. It is very important that you manage your money properly when you have a 0% rate. Resisting the temptation to spend on the original or much, much worse than that, the 0% card will go a long way to stopping you from falling into a spiral of debt.

In the UK from the beginning of 2011, customers repayments have to go toward the most expensive debt first, but until then many credit card companies will be continue to make more money through interest charges buy paying down the cheaper debt first.

Lots of people are continuing to make this mistake of spending on a credit card that should only be used for a balance transfer despite the huge publicity surrounding the issue. The problem can also be compounded by some of these cards being touted as zero percent of purchases as well as balance transfers, albeit on a much shorter term deal for most cards. The short-term deal will then end and the outstanding balance is locked in buy the cheaper debt and the interest starts building at a much higher rate. The simplest way to steer clear of this gaffe would be to use a different card for purchases and another for a balance transfer. These days, where credit has been much harder to obtain this is not always easy to do. The best advice is to never borrow more than you need be disciplined when you have one of these 0 balance transfer credit cards.