Zero-interest offers: They are not always a free ride

Even though balance transfer cards can save you a lot of money, they come with their own set of risks. Today, the average interest rate for new credit cards worldwide is over 20 per cent — and if you don’t manage to pay off your balance during the promo period, those high rates will kick in fast.

- BY JUSTIN GEORGE VARGHESE Your Money Editor

Key warnings to keep in mind:

Fees can eat into your savings

Balance transfer fees typically range from 3 per cent to 5 per cent. Always include them in your calculations when deciding if a card is worth it.

Shorter promo periods ahead

With global interest rates climbing, card issuers are offering less generous deals — shorter no-interest periods and higher fees.

Approval limits are tighter