HSBC launches new 12-month free balance transfer deal - 15/08/2006

Good news from the balance transfer credit card market is not often heard these days, which is why so many will no doubt be glad to hear of HSBC's latest offering.

The company is launching a deal providing zero per cent on all balance transfer transactions for 12 months, alongside a three-month interest free deal on purchases.

The free balance transfer period is twice as long as HSBC's last deal, reverting to a typical APR of 15.9 per cent.

HSBC said that the company was not trying to encourage people to juggle their borrowing but keep it affordable by offering free terms.

"At HSBC we continually look for ways in which we can help borrowers better manage their debt and we recognise that people are becoming more careful with their credit card borrowing," said spokesman Spencer May.

"This is evidenced by recent reports which show UK credit card borrowing falling in four out of the last six months.

"It is for this reason that we have decided to extend our latest interest free offer on balance transfers. As a result cardholders will see their existing credit card debt reduce more rapidly and save themselves hundreds of pounds in interest."

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