0 Transfer Balance Cards Life Of The Transferred Balance

One in five will carry credit cards debts all year - Walletpop UK

Of course, there's always the possibility we're all on a 0% balance transfer deal, and are in fact borrowing very sensibly. The trouble is that the statistics don't seem to back this up. Apparently only 14% of consumers switched credit cards in 2010 and 12% have never switched their card provider. It means we're simply borrowing in the least cost-effective way available because we refuse to face reality and get to grips with our debt. In the real world, therefore, the answer is to switch cards. The good news is that if you have a good credit record, there are some very useful deals out there. You will usually have to pay a charge to switch to a 0% deal - often around 3% of the balance, but if you can get one of these cards, you can get a significant period interest free. One new deal from Barclaycard offers 18 months interest free, with a transfer fee of 2.9%. However, that fee will be reduced by £20 for transferred balances of over £3,000. Consumers will not be able to transfer balances between two Barclaycards and the rate will revert to 16.9% APR at the end of the introductory period. This should solve the short-term problem, but if you're going to avoid getting into trouble time and again, you need to address the long-term one of your attitude to debt. The Gocompare study found that only 29% of people had resolved to reduce their loan and credit card costs this year. It means the rest are going to end up spending a good portion of their take-home pay on interest, and in this environment, who can afford to do that?

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