It is believed that around one third of credit card holders in the UK fail to pay off their balances in full each month. These people could save themselves a significant amount of money by regularly switching to credit cards offering 0% for balance transfers or moving the debt to a card offering a low life of balance rate.
It is estimated that if everyone transferred their credit cards and store cards, more than £2bn a year could be saved in total.
An easy option for individuals who are struggling to pay off their credit card balance is to switch to a provider offering introductory 0% for balance transfers. A large number of credit card issuers now offer zero percent interest rates on balance transfers for a fixed time period of usually 12 months, but depending on the current deals, this can be a much as 29 or 31 months. If you are currently paying interest on a balance with your current card, it makes sense to transfer your existing store or credit card balance to another provider.
Use the compare tool at the top of this page to find credit cards with 0% for balance transfers The best deals will appear at the top of the listings.
Remember to at least pay the minimum repayment each month
Of course you must always meet at least the minimum monthly repayments with your new card as the intro deals do not mean you have nothing to repay, they simply mean you will not be charged interest on what you owe.
Switch again when the intro period expires
If you fail to pay off the debt completely once the 0% intro rate for balance transfer expires you could apply for another card and transfer your balance again. However if you plan to do this you should always remember, in the month the 0% ends, to move the debt again to another 0% offer – this means applying for another card about 6 weeks before the intro period end. You will need to be very disciplined and remind yourself to do this.
Life of Balance Rates
However, if you are likely to be carrying a debt balance for some time and easier option than switching is to go for a credit card offering a guaranteed low rate on balance transfers until the balance is completely repaid. American Express offers a fixed low APR for the life of the balance with its Platinum card.
Balance Transfer Fees
When shopping around watch out for balance transfer fees. These are are becoming more and more common as card providers try to recover some of the money they lose by offering interest free periods. The charge is typically 2.5% of the balance transferred.
Compare Credit Card Balance Transfer Rates
Use the interactive search facility above to compare the deals currently on offer. Select the right one for you and apply online!