Consumers looking to prepare their finances for what could be a tough winter economically, will be disappointed to see that many banks have been cutting their 0% balance transfers credit card deals.
A 0% balance transfer credit card is often a good option for those looking to consolidate or move interest-bearing credit card debt to an interest-free card, making it easier and cheaper to repay the debt. But our research has found that since July the average interest-free period on 0% balance transfer cards has fallen by 33 days, down from 553 days at the start of July to 520 days today.
“Credit card providers are tightening their 0% introductory balance transfer offers, and over the past three months over a dozen cards have seen their terms slashed,” explained Rachel Springall, finance expert at Moneyfacts,co.uk. “This movement could well be attributed to the continued economic uncertainty surrounding the Coronavirus pandemic and the subsequent impact on how much risk providers are willing to take and how consumers may be situated financially.