You may have received credit card offers in the mail that offer 0% APR balance transfers, and wondered if they could benefit you. Whether you are looking to save a little money, or you have a long-term debt elimination plan, you can use these balance transfers to your advantage. There are some essential things you might want to understand first before you take the first offer.

First, just what is a balance transfer? This is an offer in which a credit card company makes an exceptional offer interest rate wise in order to earn your business. This is done by offering a lower annual percentage rate (APR), usually on transferred balances. Some of these offers are 0%, with varying lengths of time for the offer to be in place. The range is usually between 90 days, with the best being a full year. After that time, your transferred balance will go to the regular interest rate offered by that card.

What is a good offer? While not as common as a few years ago, you can still find some companies that will offer a full year of zero interest on transferred balances. Many only offer the lower interest for a few months, and you must factor in a potential transfer fee. Determine how much interest you will be realistically paying over the course of a year, and subtract the transfer fee to determine if it is worthwhile. Usually it will be profitable, even with a 3% fee, if you have a credit card with an interest rate in the teens. It is also important to determine how much interest is charged on new purchases, as no card gives you 0% interest on new purchases.

Currently, consumers can expect to save approximately $140 for each $1,000 in credit transferred. This amount will be higher or lower depending on your interest rate. Balance transfer calculators are available online to give you an estimate of your savings, and you may find that it is worth the effort to transfer debt to another owner. Some people won’t get excited over saving a few dollars in interest, but keep in mind that any payments you make will be applied to the current amount due as long as you pick a card that isn’t accruing interest.

No company will offer 0% for life, so make sure that when you transfer you look at the fine print. Know how long the lower interest rate lasts, how much the interest rate is on new purchases, and whether or not there will be accumulated interested on unpaid balances at the end of the offer. With the competition among creditors, you can find better deals to get you out of the credit card web faster, but shop smart. The smartest way to get out of debt is to pay it off. Once you have a 0% card, make sure to maximize your interest free period to get your balance lowered.