Pay off 0% credit card debt before rate expires

By UK CreditCards.com

0 per cent transfer credit cardsBritons taking out 0% credit cards should ensure that they pay off their transferred balances before the introductory rate expires.

Kevin Boon, counselling team leader at the Consumer Credit Counselling Service, admitted that such deals are a useful way for consumers to rearrange their debts.

However, speaking to the BBC, he warned that they should also be approached with caution, as rates on outstanding balances are likely to be higher when the initial period is over.

"If you did go down this route, you would have to be really strict with yourself and not use the card in any other way," he told the news provider.

"Another thing to take into account is the interest rate after the promotional period has ended, as this normally increases to a much higher rate."

Mr Boon also reaffirmed the importance of attempting to reduce costs and increase gross income when looking to clear outstanding debts as soon as possible.

A recent study by Santander Cards suggested that Britons will move a combined £3.2bn onto new credit cards in the first three months of 2010.ADNFCR-2308-ID-19552724-ADNFCR

Published: 14 January 2010