Posted on Sunday, 8th January 2012 by Heather Powell
While avoiding debt entirely is the best advice for a healthy start to the New Year, those with a festive financial hangover may be considering a 0 per cent interest balance transfer credit card.
We investigate the best cards and what pitfalls should be avoided if you get one.
A substantial 28 per cent of us will end up getting into debt this Christmas, research has claimed.
On average this financial hangover will take consumers six months to repay, with almost one in ten people still in debt come next Christmas, according to uSwitch.com.
Switching to a 0 per cent balance transfer card can save borrowers hundreds of pounds in interest repayments, if done correctly.
There are a number of balance transfer credit cards on the market but you need to calculate realistically how long it will take to pay off your balance.
By moving your balance to one of these cards, all the money you repay will go straight paying off your debt – as long as you pay off the total in time and don’t have a balance left at the deadline.
There are other hidden risks to watch out for, such as transferring your balance within the allotted time and making sure payments don’t bounce.
Borrowers must also resist the temptation to use the card for ordinary purchases, which will only add to the debt total.
If you already have a balance transfer credit card then you may find that you cannot get one from another lender within the same group. As always check the terms and conditions carefully before you apply.
Also anyone applying for one of these types of cards should remember that theyre only available to those with excellent credit ratings, and multiple applications will have a negative impact on your score.
Barclaycard Platinum card with balance transfer [more details]0 per cent24 months3.2 per cent 17.9 per centBarclaycard Platinum card with extended balance transfer [more details]0 per cent21 months2.9 per cent17.5 per centHalifax Balance transfer card [more details]0 per cent 22 months3.5 per cent17.9 per centVirgin Credit card [more details]0 per cent 20 months 2.99 per cent18.90 per centCreation Credit card [more details]0 per cent20 months3.20 per cent 16.9 per cent
Source: Moneysupermarket.com
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Tags: Balance Transfer, Balance Transfer Credit, Credit, Transfer Credit
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