Credit cards Updated:
As prices continue to rise, many more consumers are seeing their credit card bills increase. Even if you're not one of the people who is having to use your credit card just to get by each month, the likelihood is that you have been hit by an increase of some sort from your card provider.
If you now find yourself with a debt on your card and you want to cut down your monthly repayments, the best option is a balance transfer.
The majority of the cards on the market come with a 0% balance transfer deal for a period of between three and fifteen months. Alternatively, if you don't want to keep switching cards and can't pay off the debt during the term of the introductory deal a life of balance transfer card may be more suitable.
The average purchase rate today stands at 17.09% APR. If you switch a £3K debt from this card to the Citibank iTunes Rewards MasterCard, you would save £2,516 in additional interest.
There are a couple of things to bear in mind when selecting a balance transfer card.
Unless you live in Northern Ireland, you will have to pay a balance transfer fee on 0% cards. This can be up to 3% of the amount of debt you transfer.
Don't use the card to make additional purchases. Most credit cards repay the cheapest debt first, meaning that any new debt will stay on the card longer, accruing interest.
In recent months we have seen a number of credit cards extending the length of their balance transfer deals. At a time when every penny counts, shop around and you could make some superb savings for yourself, rather than lining the pockets of card providers."
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.