The "Munificent Seven"

It is hard to believe that banks are giving away money during a credit crunch. But they are, in the competitive balance-transfer market.

There are more than 90 zero percent balance-transfer cards, with transfer periods that range from six months to 16 months. A munificent seven don't charge interest over 14 months.

Capital One Balance-Transfer Platinum card is a standout because of its generous 16 month interest-free period. This means you have no interest to pay until 1 November 2009. But you do need an impeccable credit history to get one.

Another eye-catcher is Virgin Credit Card. Although its 15-month interest-free period is slightly shorter than the Capital One card, it charges a tad less to transfer a balance - only 2.98% instead of 3%.This makes it marginally more attractive because the Annual Equivalent Rate (AER) of the deal is 4.52%. The Capital One offer works out at 4.55%.

Capital One has another card in the top-seven list of balance-transfer cards. Confusingly, it is called Capital One Platinum. It charges 3% to transfer balances from other cards, which are then free of interest for 14 months.

Other cards that offer interest-free balance transfer for 14 months include three from Barclaycard. They are Barclaycard Platinum, Barclaycard OnePulse, and Barclaycard Flexi-Rate, which all charge 2.9% balance-transfer fees. Completing the munificent seven is Lloyds TSB Platinum MasterCard, which charges an upfront fee of 3% in exchange for a 14-month interest free period.

David Kuo, Head of Personal Finance at Fool.co.uk, says: "Interest-free balance transfer cards are an oasis of relief for consumers parched by the burdens debt.

"With over 90 cards in the market, there are lots to choose from. However, even in oases, water does not come cheap. A nominal balance-transfer fee can work out to be quite expensive for short transfer periods.

"Additionally, the balance transfer deal will amount to nothing more than a mirage if you don't take active steps to repay the debt before the end of your balance-transfer period."