Lloyds bank has launched two new credit cards this week, one with a low balance transfer fee of only 0.4%.
Many people wait until the New Year to tackle their credit card debt or switch cards to avoid paying interest.
This typically leads to balance transfers peaking in January.
However, for the savvy few, there are currently some great deals to be had.
Low 0.4% transfer fee
In particular, Lloyds bank has launched two new credit cards this week that are worth taking note of.
The first, the Lloyds Bank Platinum credit card, offers 10 months interest-free on both balance transfers and purchases.
What makes this card stand out is its transfer fee – this is the charge you’ll pay for moving your debt from one card to another – which is a low 0.4%.
If you move £1,000 from an existing credit card to Lloyds, you would only pay £4.
Cheapest way to clear debt
This is currently one of the lowest transfer fees on the market.
Barclaycard has a card that has no transfer fee at all but it only comes with six months interest-free instead of 10.
Nerys Lewis, head of credit cards at Confused.com, says: "The Lloyds credit card could be ideal for people who can pay off their outstanding credit card balance in less than a year.
"For those with around £1,000 to clear this is likely to be one of the cheapest ways to get rid of their debt."
16 months interest-free spending
Lloyds has also launched a new credit card that offers 18 months interest-free on balance transfers, for a 2% fee, and 16 months interest-free on purchases.
What makes this card noteworthy is the length of the purchases period – at 16 months 0% this is not far off Tesco’s market-leading 19-month deal.
Lewis says: "If you need a little longer to pay off your debt, and you want interest-free spending too, then this is a really competitive deal."
While both of Lloyds' cards come with attractive offers, there are a few things to consider first, says Lewis.
Think before you apply
"Both cards are great all-rounders but are only really suited to people that need both the balance transfer options as well as 0% on purchases," she says.
"If you just want a card for spending on then you may want to look elsewhere as options such as the Tesco 19-month 0% card may be more suitable.
"Similarly, if you only want to do a balance transfer then there could be better options out there for you."
The Barclaycard Platinum currently offers the longest balance transfer deal in the UK - 33 months interest-free for a 2.79% fee.
How to find the right card for you
When it comes to balance transfers, perhaps the best starting point is to work out how long you need to pay off your debt.
This will tell you the length of the interest-free period you need and you’ll then be able to search for a credit card that is right for you.
Remember that if you go over the 0% period you’ll end up paying interest unless you can then switch to another interest-free card.