Credit cards Updated:
Research by Moneyfacts.co.uk has revealed a significant increase in the 0% interest balance transfer periods offered on credit cards.
Appearing on BBC Breakfast this week, Editor of Moneyfacts.co.uk, Sylvia Waycot, stated that the longest 0% balance transfer period currently stands at 27 months. In stark contrast, this time three years ago the longest 0% balance transfer period stood at 16 months. The longest available 0% balance transfer period has risen from 16 to 27 months:
Competition in the balance transfer market has increased over the past two years, ever since Barclaycard announced in February 2011 that it would be extending the 0% balance transfer period on its Platinum with Balance Transfer Visa card to 18 months.
Speaking to the BBC, Ms Waycot said card providers were responding to a larger number of people who are focusing on paying off their existing card balances, rather than accruing more debt.
"If you take a card with an interest free (balance transfer) period and make sure you pay off the debt in the interest free period, then you are not paying any interest and all of the money is going into paying off the existing debt," she explained.
"The key is actually making sure you pay off the debt."
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