Pull off a stand-out transfer deal - Credit cards - News - Moneyfacts


Pull off a stand-out transfer deal

Pull off a stand-out transfer deal

Category: Credit cards

Updated: 20/08/2010
First Published: 20/08/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The football transfer window may slam shut in just a few days time, but there is still ample time to pull of the deal of the summer – a 0% balance transfer.

It is a scenario that chimes with many: making just the minimum repayment on our credit cards and ignoring the fact that the main balance has barely moved in months or even years.

Even small balances can take years and years to clear by making only minimum repayments.

With the amount eventually paid back swelled by interest repayments, it is often the case that substantially more is spent paying back credit card debt than was originally spent on the plastic.

Credit card repayments made by consumers that could have switched to a 0% balance transfer card, but didn't, totalled some £9 billion last year – a staggering amount by anybody's standards.

So, as another unpredictable British summer draws to a close, now is as good a time as any to get your credit card or credit cards in order.

A stand out choice if you're looking to shift your debt onto a 0% balance transfer card is the Barclaycard Platinum Balance Transfer Visa, which has just benefitted from the interest free period rising from 15 months to 16 months!

A 16 month period in which you won't be charged interest on your transferred balance means you'll have plenty of time to really eat into your debt.

For instance, if you have a balance of £2,000 to pay off, a payment of £125 a month for the term of the card will clear it completely.

It is certainly worth setting up a direct debit for such an amount at a date when you know you will have sufficient funds to make a payment i.e. when you've been paid.

If you're serious about clearing your balance, make sure you do not spend on the card, as interest will be accrued on new balances. Instead, if you cannot face the thought of giving up credit card spending, look for one that offers 0% interest on purchases.

A balance transfer will entail a charge for switching, typically around 3% of the balance, while the interest rate after the 0% period can be quite hefty, so make sure you regularly review your situation.

However, as a method of paying down credit card debts without incurring interest, 0% balance transfer cards are hard to beat.

Check the Moneyfacts Best Buy tables for a range of 0% balance transfer cards, which include long balance transfer offerings from NatWest and Nationwide.

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.

Related Articles

It’s looking to be a credit Christmas

We are now less than 70 days away from Christmas, and with 70% of people admitting they haven’t started saving yet, millions will be needing to play catch-up - and plenty planning to turn to credit for some Christmas spending relief.

Can no credit score be as damaging as a bad one?

Debt is becoming an increasing problem, which is why those who have no credit commitments often feel pretty smug about it. However, while not relying on credit is admirable, having no credit score can actually be just as damaging as having a bad one.

Know your credit score – key to better borrowing

We all know how important it is to be credit savvy. It’s the only way to make credit work, which is why it’s so concerning that so few people know their credit score – and some don’t even know how much they’re borrowing.