It might sound counter-productive to apply for a new credit card if you’re trying to get out of credit card debt. However, sometimes it’s a smart move. Credit card companies often allow you to transfer a balance on one card to their own card, and sometimes for discounted interest rates. Basically, by switching credit cards through a balance transfer, you have the power to change the terms of your credit card agreement to something more attractive. The following tips will help you make the most of balance transfers as a tool in paying off your credit card debt.

1. Apply for a credit card with 0% interest on balance transfers.

Many credit card companies offer an introductory 0% interest rate on balance transfers, such as for six months. If you get approved for one of these cards (like the ANZ Balance credit card), you can immediately stop some, or all, of the interest on your existing credit card from further adding to your debt. Transferring those high interest balances to a 0% interest card will help you get out of credit card debt by allowing your future payments to go more towards the principal balance you owe instead of paying off the ever-growing interest added to it.

2. Look for a lower regular rate after the introductory rate expires.

If you have a particularly large balance, and you know you won’t pay it off in full before the 0% interest rate expires, also pay attention to the regular interest rate of the new card for your balance transfer. Look for a credit card that not only offers you no interest for the first few months, but a low interest rate afterwards. Another option is to go with a credit card company offering a low balance transfer rate, instead of no-interest, but for the life of that balance transfer (like the Citibank Platinum credit card which offers a 4.99% APR for the life of your balance transfer).

3. Pay off all, or most, of your balance during the introductory period.

To get the most out of balance transfers when trying to get out of credit card debt, it’s important to pay off as much of your balance as possible within your 0% interest introductory period. After that point, you’ll continue to accrue interest. If you’re serious about paying off your credit card debt, that introductory period is the perfect time to focus on budgeting. By cutting other costs (and not using your credit cards for new charges), you may be able to pay off your balance in full, which not only eliminates your debt but also frees up more of your disposable income once your credit card is paid off.

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A balance transfer alone won’t eliminate your credit card debt, but it can go a long way towards minimising any increase of that debt. Even if your card charges a balance transfer fee, it will generally cost you less in the long run than continuing to pay a higher interest rate as you pay down your balance. Remember to look beyond the immediate benefit to how your new balance transfer credit card will save you money over time, and you’ll be able to make that balance transfer really work for you.