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I want to start clearing a debt with a 0% balance transfer credit card but I'm not sure that I'll be accepted for a new card. Is there an alternative?

There is an alternative to joining the balance transfer rat race: asking a bank you already have a relationship with for a personalised deal.

Like any 'official' balance transfer offer, you're asking the card provider to take on your existing debt in return for a fee for transferring the debt and/or the interest due on the balance you move.

Unlike a deal you'd see advertised, however, the card provider sets the terms they're willing to offer based on how much they want to retain you as a customer.

The deals on offer are rarely better or equal to the card provider's advertised introductory balance transfer offers but that doesn't matter as long as they can cut the cost of your current debt and many can.

How to do it

So let's get practical: how can you get one of these deals?

Calling the provider you're in debt to

The first method is to call the credit card company with the debt that you're trying to reduce the cost of repaying.

In this case, the card provider might offer a deal which reduces the interest rate of the debt either because you're having trouble meeting the repayments or to stop you moving the debt on elsewhere.

Technically it's not a balance transfer - there's no transfer - but the effect is the same.

They're unlikely to offer a limited time 0% deal but an APR reduced by even 30% - 50% will make a huge difference to the amount you have to repay.

And all for the price of a phone call.

Here's a few ways you could get the ball rolling:

"Hi - I currently have a balance of £X on this card and I want to pay it all off soon. Could you decrease my interest rate to help me do that?"

"Hello - I'm thinking about moving my balance over to a low interest deal but I'd really rather stay with you if I can: could you match X% [life of balance transfer rate]?"

Calling other providers

However, if you have one or more credit cards in addition to the indebted card calling those other card providers could be even better.

In this case, the deal you're after works just like an official balance transfer and the benefit for the card provider you're moving the money to is clear: they get a one off fee for moving the debt plus your future business, including any interest payments you might make.

For that reason, these card providers are more likely to extend 0% deals or very low APRs (less than 10%).

However, just as with a normal balance transfer, you'll only be able to move about 90-95% of the available credit limit so, before calling, it's worth checking that the amount you'd like to move and the amount you have available match up.

When you get through to customer services here are a few ways you could start the conversation:

"Hi - I'm calling because I have a credit card with X and I'm paying X% APR on it, I'd really rather move that money here at a lower rate: would that be possible?"

"Hello - I'd like to move a debt to this credit card. What's the lowest interest rate I could pay back at?"

Don't ask, don't get

In short, as your mum, and many motivational speakers, have said before: if you don't ask, you don't get.

There's absolutely no guarantee at all that asking your current provider to cut you a deal will work but it does work sometimes so calling up and being polite but firm about what you want to do is the only way to know for sure.

Having said that, you can get some idea of what you're in for by listening to other people's experiences before going ahead.

We've got a few in the next section.

Who offers these deals?

Since this type of balance transfer is usually unofficial and extended on a case by case basis there are few hard and fast rules about what's available.

However, there are two official schemes - from Barclaycard and Post Office - and several providers who are well known for offering these kinds of deals.

As we note above, though, there's nothing to stop any provider offering these balance transfers so it's always worth asking.

Finally, letting us know about your successes (and your failures) in the comments below helps other people to benefit from your experiences. Please share!

Barclaycard

Barclaycard holders are the only ones that currently have access to an 'official' existing customer life of balance transfer offer.

Eligible customers can transfer balances from providers other than Barclaycard and get a low rate - currently 6.9% p.a. variable - until the balance is repaid in full.

If the provider agrees, the offer means that customers can move up to £5,000 to their Barclaycard or 90% of their credit limit, whichever is lower.

Post Office

Another official scheme is provided by the Post Office credit card [click through for cost of credit].

This is a 0% credit card when it's first taken out but it has the unusual feature of rewarding its long term customers with repeated 0% periods after the initial one has finished.

The extra 0% periods last for five months and begin on the anniversary month in the second and third years of account ownership.

There's still a handling fee to pay and balances must be moved from other card provider's accounts.

MBNA, Tesco and Halifax

Finally, these three providers seem to have the most consistent reputations for extending both 0% and low interest balance transfer offers.

MBNA, in particular, seem to often be quick to offer 0% balance transfer deals to their existing customers, albeit often with shorter periods and for a higher transfer fee - often around 5% for existing customers (that's in comparison to around 3% for new customers).

Are they worth it?

Just as with any balance transfer offer, it's worth asking - is it worth it? - before moving a balance to an existing provider.

Very often, it is worth it not only because it reduces the cost of debt but because it encourages you to pay off the whole amount.

However, it's not always the case: if the transfer fee is high and/or you may end up paying interest after the 0% period staying put may be cheaper.

Please see our full balance transfer guide for more information on checking whether you're getting a good deal.

It's also worth noting that even small special offer interest rates can make a huge difference to the cost of the debt.

See our guide on the differences between life of balance and 0% deals for more advantages but, for example, if you were to leave a £5,000 debt and only make the minimum monthly payments (3% or £5) on a card with a 18.9% p.a. interest rate you'd pay about £4,600 in interest over 22 years.

If you moved the balance onto a 6.9% p.a. for life deal and, making the minimum repayments, would pay only around £900 in interest over 14 years.

It's a huge difference (although needless to say, the real moral here is to never make only the minimum repayments).