Move quickly to catch the last zero deals

Virgin Money added its name on Friday to the list of providers no longer offering such deals to lure new customers.

Those taking up its introductory offer of a 0 per cent annual percentage rate (APR) for nine months on balance transfers must now pay a 2 per cent charge (up to a maximum of £50) for the privilege.

"The move is necessary if we are to continue to offer the 0 per cent balance transfer option," a spokesman says.

MBNA, Barclaycard, Mint and Egg - the lender that first introduced the 0 per cent balance transfer five years ago - all now levy a fee of around 2 per cent if customers want to switch existing debt from a rival card.

Many lenders now charge a fee for 0 per cent balance transfers to clamp down on savvy rate tarts who repeatedly switch between deals to avoid paying interest on their debt, says financial analyst Moneyfacts.

Only a handful remain fee-free, including Capital One, Abbey and Yorkshire Bank.

If your 0 per cent transfer deal is coming to an end, you'll need to move quickly to secure another free deal while they still exist.

Alternatively, you could opt for a low-rate life-of-balance transfer card - such as Capital One, charging an APR of 6.9.

Virgin's decision to charge for transfers follows a move by Sainsbury's Bank to ditch the choice of loyalty points or cashback for new credit card customers, in favour of in-store discount vouchers.

It offers an APR of 0 per cent on new purchases for 10 months, and a lifetime rate of 5.9 per cent for balance transfers made within the first six months of the card being taken out.

"With 0 per cent interest deals reportedly costing the card industry in excess of £1bn per year, and many high-street banks reporting a steep increase in bad debts, it's not surprising to see providers taking measures to reduce their costs," says a Moneyfacts spokeswoman.

When you switch debt between credit cards, check exactly how your debts - new and old - are repaid.

Many lenders use your monthly repayments to pay down your cheaper debt first - whether on new purchases or balance transfers. This allows them to make more money on your more expensive balances.