Pay off 0% credit card debt before rate expires
By UK CreditCards.com
Britons 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.
Published: 14 January 2010
- What is a 'life of balance transfer' card? – There are plenty of 0% balance transfer deals on the market, but in some cases, a "life of balance transfer" might be smarter ...
- With long 0% balance transfer deals, one strike, you're out – The balance transfer "war" continues, and many consumers are getting long 0% interest balance transfer deals. However, many of those deals are cut short after only a few months when consumers slip up ...
- How do banks benefit from long balance transfer offers? – Banks are competing to offer the longest 0% interest balance transfer deals, which is great for consumers, but what's in it for the banks? There are still a few ways for companies to make money off you, even if you aren't paying interest ...