A number of organisations are now offering low-rate and interest-free credit cards and with Australians owing over $30 billion on their cards, they are attracting much attention. If you have accumulated a large debt on your card you may be considering whether to transfer your balance to one of these types. However, make sure you fully understand what is being offered - some of them come with a sting.

A wide range of companies - including GE Money, ANZ, Virgin Money and BankWest - are offering low-rate or zero-interest credit cards. See some of the latest credit card specials here at Artog.

Usually the zero or very low interest rate on a balance transfer is offered for the first six to twelve months and then it reverts back to a standard rate. Such cards may provide you with some debt relief for a short period of time but you need to ensure you understand all the conditions that are attached to them.

The other alternative is an ongoing low interest rate card where you receive the benefits of a low rate for an extended period of time. This type of card may be suitable for people who are not interested in credit card rewards or other perks and just want to save on their credit card interest expense.

If you are interested in transferring to a low-rate or interest-free card, or any credit card, the following may also help:

• Find out what the revert rate is. This is the rate of interest charged when the low-rate or the interest-free period ends.
• Find out what the purchase rate is - this is the rate of interest charged for additional purchases.
• Understand how the repayments are calculated. In some cases the repayments are applied to the balance transfer first.
• Find out what the fees are. By the time you take these into account you may find you are not getting a better deal.
• Make more than the minimum repayments so you will eventually pay off your debt.
• After you transfer your credit card balance to a new low-rate card, cancel the old card so you aren't tempted to build up debt on it again.
• If you are in debt and are only transferring your balance onto another card to provide some short-term relief, you need to seriously look at changing your spending habits.