Credit cards Updated:
Many people are predicting that it is going to be a tough year in the personal finance world, so now is the time to get prepared for the rough ride ahead.
Here's the Moneyfacts.co.uk guide to getting to grip with your finances and how to make better financial decisions in 2008.
If you find that your financial problems are more severe, then you should seek free confidential advice from your local Citizens Advice Bureau or contact the National Debtline. You can also read our article on Getting out of debt for more top tips.
Once you know exactly what you need to borrow, look at the refinancing solutions that are out there to help you to regain control your finances.
Credit Card Balance Transfer Deals
If you have built some debt on credit cards and store cards and you are paying interest rates of 20% plus, you could be paying a great deal less. 0% balance transfer deals can work well for those with expensive credit card debt to switch over. The best thing to do, once you've transferred your credit card balances, is to close the old credit card accounts and also cut up your new credit card to stop you being tempted to use it for purchases.
As with all free deals there are catches to be aware of:
If you are paying high rates of interest on numerous credit cards and store cards and want to pay it off and be left with a more manageable single monthly repayment, then an unsecured personal loan could be the best route for you. The advantage of a personal loan is that you have an agreed interest rate and monthly repayment, both of which are fixed for the full duration of your personal loan agreement.
If you do look into the possibility of getting taking out an unsecured personal loan, keep an eye out for the personal loan provider pushing you into buying expensive insurance to go with it.
The New Year will undoubtedly pick up where 2007 left off, with some 0% credit card balance transfer deals and low rate personal loans available for those with a spotless credit history. The problem is that, because of the credit crunch and increased levels of bad debt suffered by lenders, consumers with a less than perfect credit history will find it more expensive to borrow money on credit cards and personal loans.
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 Any products featured may be withdrawn by their provider or changed at any time.
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